Hennes & Mauritz AB (OTCMKTS:HNNMY) Stock Short Interest Climbs 175.4%

Key Points

• Short interest jumped 175.4% to 50,348 shares as of September 15, but it still represents roughly 0.0% of shares outstanding and only 0.1 days to cover.
• H&M reported stronger-than-expected third-quarter operating profit, supported by improved margins and cost savings. EPS matched estimates at $0.05, while revenue of $5.98 billion exceeded the $5.84 billion forecast.
• Despite the earnings beat, investors remain concerned about weak sales momentum: September sales are expected to rise just 1% in local currencies, while Barclays cut its price target and the analyst consensus remains “Reduce.”

Hennes & Mauritz AB (OTCMKTS:HNNMY - Get Free Report) was the recipient of a large growth in short interest during the month of September. As of September 15th, there was short interest totaling 50,348 shares, a growth of 175.4% from the August 31st total of 18,279 shares. Approximately 0.0% of the shares of the company are sold short. Based on an average daily trading volume, of 419,702 shares, the days-to-cover ratio is presently 0.1 days.

Hennes & Mauritz News Summary

Here are the key news stories impacting Hennes & Mauritz this week:

• Positive Sentiment: Third-quarter operating profit increased more than expected, helped by improved gross margins, cost savings and tariff-related benefits. EPS of $0.05 matched consensus, while revenue of $5.98 billion exceeded the $5.84 billion estimate. H&M's operating profit grows more than expected in third quarter
• Positive Sentiment: Management’s cost-cutting program is beginning to support earnings, and summer collections were reportedly well received. Sales for June through August rose 1% in local currencies, slightly ahead of one analyst forecast. H&M Earnings Rise as Cost-Saving Push Pays Off
• Neutral Sentiment: Short interest rose 175.4% between August 31 and September 15 to 50,348 shares. However, short interest remains negligible at approximately 0.0% of shares outstanding, with a short-interest ratio of only 0.1 days, limiting the immediate significance.
• Negative Sentiment: September sales are expected to grow only 1% in local currencies, disappointing investors seeking stronger momentum. The modest outlook overshadowed the earnings beat and points to continued challenges in attracting customers and accelerating revenue growth. H&M Stock Slides Despite Earnings Beat on Sluggish Sales Growth
• Negative Sentiment: Barclays lowered its price target for H&M to SEK150, while Goldman Sachs maintained a Sell rating. These actions reinforce concerns that the current valuation may not be supported by the company’s subdued sales outlook. Barclays Lowers H&M Price Target

Analysts Set New Price Targets

A number of equities research analysts have weighed in on HNNMY shares. Zacks Research upgraded Hennes & Mauritz from a "strong sell" rating to a "hold" rating in a research note on Friday, August 14th. Citigroup reaffirmed a "neutral" rating on shares of Hennes & Mauritz in a report on Tuesday, August 18th. Finally, Pareto Securities downgraded shares of Hennes & Mauritz to a "sell" rating in a research report on Friday, June 26th. Four equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce".

Hennes & Mauritz Stock Performance

Shares of HNNMY stock opened at $3.23 on Friday. The stock has a market capitalization of $22.68 billion, a PE ratio of 19.00 and a beta of 1.12. Hennes & Mauritz has a 52-week low of $3.21 and a 52-week high of $4.25. The stock's 50-day moving average price is $3.53 and its 200 day moving average price is $3.54. The company has a quick ratio of 0.53, a current ratio of 1.07 and a debt-to-equity ratio of 1.31.

Hennes & Mauritz (OTCMKTS:HNNMY - Get Free Report) last posted its quarterly earnings data on Wednesday, September 23rd. The company reported $0.05 EPS for the quarter, meeting the consensus estimate of $0.05. Hennes & Mauritz had a return on equity of 33.62% and a net margin of 5.94%.The firm had revenue of $5.98 billion during the quarter, compared to the consensus estimate of $6.16 billion. As a group, equities research analysts forecast that Hennes & Mauritz will post 0.17 EPS for the current year.

Hennes & Mauritz Company Profile

Hennes & Mauritz AB, commonly known as H&M, is a Sweden-based fashion retailer that sells clothing, accessories, footwear, beauty products and home furnishings. Its business spans design, sourcing, retail and online sales, with products aimed at women, men and children across a range of price points.

The company was founded in 1947 by Erling Persson as a women's clothing store called Hennes in Västerås, Sweden. After acquiring the hunting and menswear retailer Mauritz Widforss in 1968, it adopted the Hennes & Mauritz name and expanded into menswear and children's apparel.

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