Mediolanum International Funds Ltd Boosts Position in Deckers Outdoor Corporation (NYSE:DECK)

Key Points

• Mediolanum International Funds Ltd significantly increased its stake in Deckers Outdoor Corporation, buying 215,190 shares, bringing their total to 229,974 shares valued at approximately $25.66 million.
• Analysts have mixed views on Deckers Outdoor, with target prices ranging from $114.00 to $145.00 and an average consensus target price of $131.77.
• Deckers Outdoor is engaging in a $2.25 billion stock buyback program, which indicates management's belief that the stock is undervalued.

Mediolanum International Funds Ltd grew its stake in Deckers Outdoor Corporation (NYSE:DECK - Free Report) by 1,455.6% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 229,974 shares of the textile maker's stock after acquiring an additional 215,190 shares during the quarter. Mediolanum International Funds Ltd owned about 0.15% of Deckers Outdoor worth $25,656,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Norges Bank acquired a new position in Deckers Outdoor during the 4th quarter worth about $392,583,000. Pacer Advisors Inc. lifted its stake in Deckers Outdoor by 4,770.0% during the 1st quarter. Pacer Advisors Inc. now owns 641,082 shares of the textile maker's stock worth $71,679,000 after acquiring an additional 627,918 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its stake in Deckers Outdoor by 204.8% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 889,624 shares of the textile maker's stock worth $180,674,000 after acquiring an additional 597,743 shares in the last quarter. Envestnet Asset Management Inc. lifted its stake in Deckers Outdoor by 101.3% during the 4th quarter. Envestnet Asset Management Inc. now owns 1,003,743 shares of the textile maker's stock worth $203,850,000 after acquiring an additional 505,139 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in Deckers Outdoor by 69.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,034,191 shares of the textile maker's stock worth $210,034,000 after acquiring an additional 424,702 shares in the last quarter. 97.79% of the stock is owned by institutional investors and hedge funds.

Deckers Outdoor Price Performance

Shares of DECK stock traded down $1.29 during midday trading on Wednesday, hitting $110.82. The company had a trading volume of 1,252,687 shares, compared to its average volume of 3,477,983. The company's 50 day simple moving average is $105.57 and its 200 day simple moving average is $127.87. Deckers Outdoor Corporation has a 52-week low of $93.72 and a 52-week high of $223.98. The stock has a market cap of $16.46 billion, a price-to-earnings ratio of 16.99, a PEG ratio of 7.15 and a beta of 0.99.

Deckers Outdoor (NYSE:DECK - Get Free Report) last announced its earnings results on Thursday, July 24th. The textile maker reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.25. Deckers Outdoor had a return on equity of 40.49% and a net margin of 19.42%. The company had revenue of $964.54 million for the quarter, compared to the consensus estimate of $901.45 million. During the same period last year, the business posted $4.52 EPS. The company's revenue was up 16.9% on a year-over-year basis. Analysts anticipate that Deckers Outdoor Corporation will post 5.89 EPS for the current year.

Deckers Outdoor announced that its board has approved a share buyback program on Thursday, May 22nd that permits the company to buyback $2.25 billion in outstanding shares. This buyback authorization permits the textile maker to purchase up to 11.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Cowen reissued a "buy" rating on shares of Deckers Outdoor in a research note on Tuesday, May 20th. Citigroup reduced their price target on Deckers Outdoor from $215.00 to $150.00 and set a "buy" rating on the stock in a research report on Monday, April 28th. Stifel Nicolaus reduced their price target on Deckers Outdoor from $185.00 to $127.00 and set a "hold" rating on the stock in a research report on Thursday, April 10th. Robert W. Baird increased their price target on Deckers Outdoor from $140.00 to $150.00 and gave the company an "outperform" rating in a research report on Friday, July 25th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $128.00 price target (up previously from $120.00) on shares of Deckers Outdoor in a research report on Wednesday, July 23rd. One analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $137.50.

Insider Activity at Deckers Outdoor

In other Deckers Outdoor news, Director Cindy L. Davis purchased 1,825 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were purchased at an average cost of $109.76 per share, for a total transaction of $200,312.00. Following the completion of the purchase, the director directly owned 13,340 shares in the company, valued at $1,464,198.40. This represents a 15.85% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Maha Saleh Ibrahim sold 300 shares of Deckers Outdoor stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $109.08, for a total value of $32,724.00. Following the completion of the sale, the director owned 10,681 shares in the company, valued at approximately $1,165,083.48. This trade represents a 2.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.40% of the company's stock.

Deckers Outdoor Profile

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name.