Movado Group (NYSE:MOV) Stock Price Down 5.4% - Here's Why

Key Points

• Stock down 5.4%: Movado shares fell about 5.4% to roughly $23.30 on Thursday, trading ~54,798 shares — about 63% below its average daily volume.
• High dividend yield but risky payout: The company declared a $0.35 quarterly dividend (annualized $1.40) for a 5.9% yield, but the payout ratio is an elevated 120.69%, raising sustainability concerns; the ex-dividend date is April 2 and payment is April 16.
• Operationally, Movado beat estimates with Q earnings of $0.57 EPS (vs. $0.52) and $191.6M revenue (vs. $182.0M), while analysts maintain a consensus of "Moderate Buy" with a $30.75 price target.

Movado Group Inc. (NYSE:MOV - Get Free Report)'s stock price was down 5.4% during trading on Thursday . The company traded as low as $23.44 and last traded at $23.2950. Approximately 54,798 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 149,088 shares. The stock had previously closed at $24.62.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on MOV shares. Zacks Research raised shares of Movado Group from a "strong sell" rating to a "hold" rating in a report on Monday, January 26th. BWS Financial restated a "buy" rating and issued a $31.50 price target on shares of Movado Group in a research report on Friday, March 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Movado Group in a report on Monday, December 29th. Northland Securities initiated coverage on shares of Movado Group in a research note on Wednesday, January 7th. They set an "outperform" rating and a $30.00 price objective on the stock. Finally, Wall Street Zen raised shares of Movado Group from a "buy" rating to a "strong-buy" rating in a report on Saturday, February 7th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Movado Group has a consensus rating of "Moderate Buy" and a consensus price target of $30.75.

Movado Group Trading Down 4.4%

The stock has a market capitalization of $519.85 million, a P/E ratio of 20.23 and a beta of 0.93. The company's 50-day moving average is $24.10 and its two-hundred day moving average is $21.39.

Movado Group (NYSE:MOV - Get Free Report) last posted its earnings results on Thursday, March 19th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.52 by $0.05. Movado Group had a net margin of 3.96% and a return on equity of 6.09%. The firm had revenue of $191.58 million during the quarter, compared to analysts' expectations of $182.02 million. Sell-side analysts expect that Movado Group Inc. will post 1.05 EPS for the current fiscal year.

Movado Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 16th. Investors of record on Thursday, April 2nd will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 5.9%. The ex-dividend date is Thursday, April 2nd. Movado Group's payout ratio is currently 120.69%.

Institutional Trading of Movado Group

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of Movado Group by 5.9% in the 3rd quarter. Vanguard Group Inc. now owns 1,029,220 shares of the company's stock worth $19,524,000 after buying an additional 57,353 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Movado Group by 3.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 888,244 shares of the company's stock valued at $18,316,000 after acquiring an additional 29,137 shares during the period. Brandes Investment Partners LP lifted its holdings in shares of Movado Group by 5.6% in the fourth quarter. Brandes Investment Partners LP now owns 704,036 shares of the company's stock valued at $14,517,000 after purchasing an additional 37,587 shares in the last quarter. Ameriprise Financial Inc. boosted its position in shares of Movado Group by 14.4% in the second quarter. Ameriprise Financial Inc. now owns 636,862 shares of the company's stock worth $9,712,000 after buying an additional 80,109 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its position in shares of Movado Group by 19.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 388,418 shares of the company's stock worth $8,009,000 after buying an additional 62,278 shares during the period. 72.08% of the stock is owned by institutional investors and hedge funds.

Movado Group Company Profile

Movado Group, Inc is a global designer, manufacturer and distributor of watches and related jewelry products. The company's portfolio encompasses both owned and licensed brands, offering a wide range of timepieces from luxury to accessible price points. Major owned brands include Movado, Concord, and Ebel, alongside newer acquisitions such as MVMT and Olivia Burton. In addition, Movado Group holds licensing agreements to produce watches under fashion names like Hugo Boss, Tommy Hilfiger, Coach, Lacoste and Scuderia Ferrari.

Movado Group's product line spans classic dress watches, sport and dive models, fashion-forward designs and limited-edition collections.

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