Insider Selling: Ermenegildo Zegna (NYSE:ZGN) CFO Sells 5,768 Shares of Stock

Key Points

• Ermenegildo Zegna CFO Gian Franco Santhia sold 5,768 shares on May 8 at an average price of $13.12, totaling about $75,676. The filing says the sale was made to cover tax withholding tied to vesting equity awards.
• After the transaction, Santhia still held 44,448 shares valued at roughly $583,158, representing an 11.49% reduction in his position.
• The company recently reported weaker-than-expected quarterly results, with EPS of $0.15 versus a $0.26 estimate and revenue of $577.83 million versus $1.17 billion expected. Analysts currently rate the stock a Moderate Buy with a consensus target price of $12.26.

Ermenegildo Zegna N.V. (NYSE:ZGN - Get Free Report) CFO Gian Franco Santhia sold 5,768 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $13.12, for a total transaction of $75,676.16. Following the sale, the chief financial officer directly owned 44,448 shares in the company, valued at $583,157.76. This represents a 11.49% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Ermenegildo Zegna Stock Performance

Shares of ZGN traded down $0.67 during mid-day trading on Monday, hitting $12.49. 163,688 shares of the company's stock were exchanged, compared to its average volume of 751,829. Ermenegildo Zegna N.V. has a fifty-two week low of $7.61 and a fifty-two week high of $13.38. The company has a quick ratio of 0.91, a current ratio of 1.59 and a debt-to-equity ratio of 0.15. The stock's 50-day moving average is $11.00 and its 200-day moving average is $10.56.

Ermenegildo Zegna (NYSE:ZGN - Get Free Report) last issued its quarterly earnings results on Friday, March 20th. The company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.11). The firm had revenue of $577.83 million for the quarter, compared to analyst estimates of $1.17 billion. On average, analysts forecast that Ermenegildo Zegna N.V. will post 0.46 EPS for the current fiscal year.

Ermenegildo Zegna Cuts Dividend

The company also recently announced an annual dividend, which will be paid on Wednesday, July 29th. Investors of record on Monday, July 6th will be issued a $0.12 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a yield of 99.0%.

Hedge Funds Weigh In On Ermenegildo Zegna

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vident Advisory LLC grew its holdings in shares of Ermenegildo Zegna by 6.5% during the fourth quarter. Vident Advisory LLC now owns 18,001 shares of the company's stock worth $185,000 after buying an additional 1,097 shares during the last quarter. Orion Porfolio Solutions LLC grew its holdings in shares of Ermenegildo Zegna by 12.9% during the third quarter. Orion Porfolio Solutions LLC now owns 11,583 shares of the company's stock worth $109,000 after buying an additional 1,323 shares during the last quarter. Deutsche Bank AG grew its holdings in shares of Ermenegildo Zegna by 3.3% during the fourth quarter. Deutsche Bank AG now owns 57,477 shares of the company's stock worth $589,000 after buying an additional 1,822 shares during the last quarter. CWM LLC purchased a new position in shares of Ermenegildo Zegna during the third quarter worth about $25,000. Finally, Tower Research Capital LLC TRC grew its holdings in shares of Ermenegildo Zegna by 73.7% during the second quarter. Tower Research Capital LLC TRC now owns 7,146 shares of the company's stock worth $61,000 after buying an additional 3,033 shares during the last quarter. Hedge funds and other institutional investors own 12.91% of the company's stock.

Analyst Upgrades and Downgrades

ZGN has been the topic of several analyst reports. TD Cowen raised their target price on shares of Ermenegildo Zegna from $11.00 to $13.00 and gave the company a "hold" rating in a report on Friday, May 1st. Morgan Stanley initiated coverage on shares of Ermenegildo Zegna in a report on Thursday, February 12th. They issued an "equal weight" rating and a $11.00 target price on the stock. UBS Group reaffirmed a "buy" rating and issued a $14.50 target price on shares of Ermenegildo Zegna in a report on Friday, May 1st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ermenegildo Zegna in a report on Monday, April 20th. Finally, Bank of America reaffirmed a "neutral" rating and issued a $11.20 target price (down from $11.50) on shares of Ermenegildo Zegna in a report on Friday, January 16th. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $12.26.

Ermenegildo Zegna Company Profile

Ermenegildo Zegna is a global luxury fashion house specializing in men's tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.

Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.

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