Primecap Management Co. CA Cuts Stock Position in Deckers Outdoor Corporation (NYSE:DECK)

Key Points

• Primecap Management Co. CA reduced its stake in Deckers Outdoor Corporation by 82.6% during the first quarter, leaving them with 5,414 shares valued at $605,000.
• Deckers Outdoor reported $0.93 earnings per share for the recent quarter, beating analysts' expectations, with revenue reaching $964.54 million.
• The company has approved a $2.25 billion stock buyback program, allowing it to repurchase up to 11.7% of its shares, indicating confidence in its stock valuation.

Primecap Management Co. CA lessened its stake in Deckers Outdoor Corporation (NYSE:DECK - Free Report) by 82.6% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 5,414 shares of the textile maker's stock after selling 25,650 shares during the period. Primecap Management Co. CA's holdings in Deckers Outdoor were worth $605,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in Deckers Outdoor by 0.6% in the first quarter. Vanguard Group Inc. now owns 17,747,418 shares of the textile maker's stock worth $1,984,339,000 after acquiring an additional 107,635 shares in the last quarter. Northern Trust Corp boosted its holdings in Deckers Outdoor by 13.9% in the fourth quarter. Northern Trust Corp now owns 1,581,702 shares of the textile maker's stock worth $321,228,000 after acquiring an additional 192,469 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Deckers Outdoor by 11.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,423,149 shares of the textile maker's stock worth $289,027,000 after acquiring an additional 145,794 shares in the last quarter. Federated Hermes Inc. boosted its holdings in Deckers Outdoor by 1,998.7% in the first quarter. Federated Hermes Inc. now owns 1,163,977 shares of the textile maker's stock worth $130,144,000 after acquiring an additional 1,108,516 shares in the last quarter. Finally, Deutsche Bank AG boosted its holdings in Deckers Outdoor by 19.2% in the fourth quarter. Deutsche Bank AG now owns 1,114,739 shares of the textile maker's stock worth $226,392,000 after acquiring an additional 179,485 shares in the last quarter. Hedge funds and other institutional investors own 97.79% of the company's stock.

Deckers Outdoor Trading Down 3.7%

Shares of DECK stock opened at $101.80 on Friday. The stock has a 50 day moving average of $104.89 and a 200 day moving average of $123.51. The stock has a market cap of $15.10 billion, a P/E ratio of 15.61, a P/E/G ratio of 4.03 and a beta of 0.99. Deckers Outdoor Corporation has a twelve month low of $93.72 and a twelve month high of $223.98.

Deckers Outdoor (NYSE:DECK - Get Free Report) last announced its quarterly 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. The company had revenue of $964.54 million during the quarter, compared to analysts' expectations of $901.45 million. Deckers Outdoor had a return on equity of 40.49% and a net margin of 19.42%. Deckers Outdoor's quarterly revenue was up 16.9% on a year-over-year basis. During the same period last year, the business earned $4.52 earnings per share. On average, research analysts predict that Deckers Outdoor Corporation will post 5.89 earnings per share for the current fiscal year.

Deckers Outdoor announced that its Board of Directors has approved a stock buyback program on Thursday, May 22nd that permits the company to buyback $2.25 billion in 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 typically a sign that the company's board believes its shares are undervalued.

Insider Transactions at Deckers Outdoor

In other Deckers Outdoor news, Director Cindy L. Davis bought 1,825 shares of Deckers Outdoor stock in a transaction dated Friday, June 6th. The stock was acquired at an average cost of $109.76 per share, with a total value of $200,312.00. Following 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 position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Maha Saleh Ibrahim sold 300 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $109.08, for a total value of $32,724.00. Following the sale, the director owned 10,681 shares of the company's stock, valued at $1,165,083.48. The trade was a 2.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.40% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Stifel Nicolaus lowered their price target on Deckers Outdoor from $185.00 to $127.00 and set a "hold" rating for the company in a report on Thursday, April 10th. Raymond James Financial lifted their target price on Deckers Outdoor from $123.00 to $137.00 and gave the stock a "strong-buy" rating in a report on Friday, July 25th. Wells Fargo & Company lifted their target price on Deckers Outdoor from $90.00 to $100.00 and gave the stock an "equal weight" rating in a report on Friday, July 25th. TD Securities lifted their target price on Deckers Outdoor from $150.00 to $175.00 and gave the stock a "buy" rating in a report on Tuesday, May 20th. Finally, KGI Securities raised Deckers Outdoor to a "hold" rating in a report on Monday, May 26th. One equities research analyst has rated the stock with a sell rating, fourteen have given a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Deckers Outdoor has a consensus rating of "Hold" and an average target price of $137.50.

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.

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