Traders Buy High Volume of Put Options on V.F. (NYSE:VFC)

Key Points

• Unusual bearish options activity: Traders purchased 126,764 put options on V.F., representing an 1,135% increase over the average daily volume.
• Insiders and institutions increased exposure: Company insiders bought 82,894 shares worth approximately $1.3 million in the last quarter, while institutional investors own 86.84% of the stock.
• Shares remain under pressure: VFC traded at $13.34, near its 52-week low, after quarterly earnings missed estimates and revenue declined 5.2% year over year. Analysts maintain a consensus “Hold” rating with an $18.21 price target.

V.F. Corporation (NYSE:VFC - Get Free Report) was the recipient of some unusual options trading on Friday. Stock traders acquired 126,764 put options on the company. This is an increase of 1,135% compared to the average daily volume of 10,267 put options.

Insider Buying and Selling at V.F.

In other news, Director Richard Carucci bought 30,000 shares of the stock in a transaction dated Tuesday, June 9th. The stock was bought at an average cost of $17.17 per share, with a total value of $515,100.00. Following the purchase, the director owned 336,043 shares of the company's stock, valued at approximately $5,769,858.31. This represents a 9.80% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Bracken Darrell acquired 32,894 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The shares were bought at an average cost of $14.98 per share, with a total value of $492,752.12. Following the completion of the purchase, the insider owned 1,402,109 shares of the company's stock, valued at $21,003,592.82. This trade represents a 2.40% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders acquired 82,894 shares of company stock valued at $1,302,452. Corporate insiders own 1.54% of the company's stock.

Institutional Trading of V.F.

Several hedge funds and other institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System lifted its position in V.F. by 1,573.0% during the second quarter. California State Teachers Retirement System now owns 6,423,735 shares of the textile maker's stock worth $107,148,000 after purchasing an additional 6,039,772 shares during the period. Bank of New York Mellon Corp bought a new stake in shares of V.F. during the second quarter worth about $42,038,000. Varenne Capital Partners bought a new position in shares of V.F. during the second quarter valued at $13,671,000. Russell Investments Group Ltd. raised its position in shares of V.F. by 14.0% during the fourth quarter. Russell Investments Group Ltd. now owns 659,773 shares of the textile maker's stock worth $11,930,000 after acquiring an additional 81,006 shares during the last quarter. Finally, New York State Common Retirement Fund boosted its stake in shares of V.F. by 0.8% in the 4th quarter. New York State Common Retirement Fund now owns 540,861 shares of the textile maker's stock valued at $9,779,000 after purchasing an additional 4,249 shares during the last quarter. Institutional investors and hedge funds own 86.84% of the company's stock.

V.F. Stock Performance

Shares of VFC traded up $0.20 during mid-day trading on Friday, reaching $13.34. The company's stock had a trading volume of 2,968,710 shares, compared to its average volume of 7,153,354. The company has a current ratio of 1.43, a quick ratio of 0.78 and a debt-to-equity ratio of 1.70. V.F. has a 1-year low of $12.94 and a 1-year high of $22.27. The business has a 50-day simple moving average of $15.49 and a two-hundred day simple moving average of $17.04. The stock has a market cap of $5.24 billion, a P/E ratio of 19.31, a PEG ratio of 0.95 and a beta of 1.57.

V.F. (NYSE:VFC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The textile maker reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.22) by ($0.05). V.F. had a net margin of 2.88% and a return on equity of 18.91%. The business had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same period in the prior year, the business earned ($0.24) EPS. The company's revenue for the quarter was down 5.2% compared to the same quarter last year. As a group, equities research analysts anticipate that V.F. will post 1.07 earnings per share for the current fiscal year.

V.F. Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 10th will be given a dividend of $0.09 per share. The ex-dividend date is Thursday, September 10th. This represents a $0.36 annualized dividend and a yield of 2.7%. V.F.'s dividend payout ratio (DPR) is 52.17%.

Analysts Set New Price Targets

Several equities research analysts recently commented on VFC shares. Evercore set a $16.00 price objective on shares of V.F. in a research report on Thursday, July 30th. Wall Street Zen cut V.F. from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. UBS Group dropped their target price on V.F. from $18.00 to $16.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Williams Trading set a $19.00 target price on V.F. in a research note on Sunday, May 17th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of V.F. in a research note on Tuesday. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $18.21.

About V.F.

VF Corporation, commonly branded as VF, is a global apparel and footwear company that develops, markets and distributes a diverse portfolio of consumer brands. Its offerings span outdoor and action sports apparel, footwear and accessories under marquee names such as The North Face, Vans, Timberland, Dickies, JanSport and Smartwool. Through a “house of brands” strategy, VF leverages the unique heritage and design expertise of each label to serve distinct lifestyle and performance segments.

Founded in 1899 in Pennsylvania as the Reading Glove and Mitten Manufacturing Company, VF evolved through a series of acquisitions and strategic expansions to become a leading player in the global apparel industry.

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