Townsquare Capital LLC Trims Stake in Deckers Outdoor Corporation (NYSE:DECK)

Key Points

• Townsquare Capital LLC reduced its stake in Deckers Outdoor Corporation by 12.4%, now owning 25,811 shares worth approximately $2.89 million.
• Deckers Outdoor recently announced a share buyback plan enabling it to repurchase up to $2.25 billion of its stock, indicating management's belief that the stock is undervalued.
• Deckers Outdoor reported better-than-expected earnings for the most recent quarter, with $0.93 EPS, surpassing analysts' estimates of $0.68 and reflecting a 16.9% year-over-year revenue increase.

Townsquare Capital LLC lessened its stake in Deckers Outdoor Corporation (NYSE:DECK - Free Report) by 12.4% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 25,811 shares of the textile maker's stock after selling 3,665 shares during the quarter. Townsquare Capital LLC's holdings in Deckers Outdoor were worth $2,886,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the stock. Forsta AP Fonden lifted its holdings in Deckers Outdoor by 42.4% during the first quarter. Forsta AP Fonden now owns 83,300 shares of the textile maker's stock worth $9,314,000 after acquiring an additional 24,800 shares during the period. National Bank of Canada FI lifted its holdings in Deckers Outdoor by 59.0% during the first quarter. National Bank of Canada FI now owns 123,168 shares of the textile maker's stock worth $13,771,000 after acquiring an additional 45,723 shares during the period. Citigroup Inc. lifted its holdings in Deckers Outdoor by 83.3% during the first quarter. Citigroup Inc. now owns 228,766 shares of the textile maker's stock worth $25,578,000 after acquiring an additional 103,928 shares during the period. AMF Tjanstepension AB lifted its holdings in Deckers Outdoor by 1,037.7% during the first quarter. AMF Tjanstepension AB now owns 596,735 shares of the textile maker's stock worth $66,721,000 after acquiring an additional 544,283 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in Deckers Outdoor by 19.6% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 279,848 shares of the textile maker's stock worth $31,290,000 after acquiring an additional 45,868 shares during the period. Institutional investors own 97.79% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on DECK shares. TD Securities lifted their price target on Deckers Outdoor from $150.00 to $175.00 and gave the stock a "buy" rating in a report on Tuesday, May 20th. Raymond James Financial boosted their target price on Deckers Outdoor from $123.00 to $137.00 and gave the company a "strong-buy" rating in a research note on Friday, July 25th. Barclays boosted their target price on Deckers Outdoor from $128.00 to $134.00 and gave the company an "overweight" rating in a research note on Friday, July 25th. Bank of America lowered their target price on Deckers Outdoor from $128.00 to $114.00 and set a "neutral" rating on the stock in a research note on Thursday, July 17th. Finally, The Goldman Sachs Group lowered their target price on Deckers Outdoor from $90.00 to $87.00 and set a "sell" rating on the stock in a research note on Tuesday, July 22nd. One investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $137.50.

Deckers Outdoor Stock Performance

Deckers Outdoor stock traded down $0.38 during midday trading on Friday, hitting $103.48. 1,523,414 shares of the company's stock were exchanged, compared to its average volume of 3,410,149. The stock has a 50-day moving average price of $104.61 and a two-hundred day moving average price of $119.64. Deckers Outdoor Corporation has a 52-week low of $93.72 and a 52-week high of $223.98. The company has a market cap of $15.35 billion, a P/E ratio of 15.85, a PEG ratio of 4.04 and a beta of 0.99.

Deckers Outdoor (NYSE:DECK - Get Free Report) last posted its quarterly earnings data on Thursday, July 24th. The textile maker reported $0.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.68 by $0.25. Deckers Outdoor had a return on equity of 40.49% and a net margin of 19.42%. The firm had revenue of $964.54 million during the quarter, compared to analysts' expectations of $901.45 million. During the same period in the prior year, the business earned $4.52 EPS. The company's revenue for the quarter was up 16.9% compared to the same quarter last year. As a group, sell-side analysts expect that Deckers Outdoor Corporation will post 5.89 earnings per share for the current year.

Deckers Outdoor declared that its board has approved a share repurchase plan on Thursday, May 22nd that allows the company to buyback $2.25 billion in shares. This buyback authorization allows the textile maker to reacquire up to 11.7% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, Director Cindy L. Davis bought 1,825 shares of the stock in a transaction dated Friday, June 6th. The stock was bought at an average price of $109.76 per share, with a total value of $200,312.00. Following the purchase, the director owned 13,340 shares in the company, valued at approximately $1,464,198.40. The trade was a 15.85% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Maha Saleh Ibrahim sold 300 shares of the company's 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 transaction, the director directly owned 10,681 shares of the company's stock, valued at $1,165,083.48. The trade was a 2.73% decrease in their position. The disclosure for this sale can be found here. 0.40% of the stock is currently owned by corporate insiders.

Deckers Outdoor Company 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.