Adidas (OTCMKTS:ADDYY) Shares Gap Up - Should You Buy?

Key Points

• Adidas shares jumped from a prior close of $88.19 to open at $94.59, last trading around $94.64. The company’s market capitalization is approximately $33.6 billion.
• Analyst sentiment is generally positive, with a “Moderate Buy” consensus rating and an average price target of $146.00, although ratings range from “Strong Buy” to “Strong Sell.”
• Adidas exceeded quarterly revenue expectations with $7.76 billion but missed earnings estimates, reporting $1.22 per share versus the $1.38 consensus. Several institutional investors recently increased their holdings.

Adidas AG (OTCMKTS:ADDYY - Get Free Report) shares gapped up before the market opened on Friday. The stock had previously closed at $88.19, but opened at $94.59. Adidas shares last traded at $94.6410, with a volume of 3,376 shares.

Analysts Set New Price Targets

A number of analysts recently weighed in on ADDYY shares. JPMorgan Chase & Co. began coverage on shares of Adidas in a research report on Thursday, July 2nd. They set an "overweight" rating for the company. Benchmark raised shares of Adidas to a "strong-buy" rating in a research report on Tuesday, September 22nd. UBS Group downgraded shares of Adidas from a "buy" rating to a "neutral" rating in a research report on Tuesday, August 4th. Barclays upgraded Adidas from an "equal weight" rating to an "overweight" rating in a research note on Tuesday, September 1st. Finally, Zacks Research cut shares of Adidas from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 13th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $146.00.

Adidas Trading Up 0.6%

The company has a market capitalization of $33.60 billion, a price-to-earnings ratio of 20.71, a price-to-earnings-growth ratio of 1.16 and a beta of 1.24. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.39 and a quick ratio of 0.74. The business has a fifty day moving average price of $85.54 and a 200 day moving average price of $89.49.

Adidas (OTCMKTS:ADDYY - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.22 earnings per share for the quarter, missing analysts' consensus estimates of $1.38 by ($0.16). Adidas had a net margin of 5.30% and a return on equity of 22.35%. The company had revenue of $7.76 billion during the quarter, compared to the consensus estimate of $7.55 billion. On average, equities analysts expect that Adidas AG will post 5.34 EPS for the current fiscal year.

Institutional Investors Weigh In On Adidas

Several hedge funds have recently added to or reduced their stakes in ADDYY. Sterling Capital Management LLC bought a new position in shares of Adidas in the 3rd quarter valued at $336,000. GAMMA Investing LLC boosted its position in shares of Adidas by 7.0% during the 3rd quarter. GAMMA Investing LLC now owns 2,249 shares of the company's stock worth $185,000 after purchasing an additional 148 shares in the last quarter. Finally, Madison Asset Management LLC raised its holdings in shares of Adidas by 7.0% in the first quarter. Madison Asset Management LLC now owns 24,125 shares of the company's stock valued at $1,935,000 after purchasing an additional 1,582 shares during the last quarter.

Adidas Company Profile

Adidas AG is a Germany-based global sporting goods company that designs, develops, markets and sells athletic footwear, apparel and accessories. Its products serve a broad range of sports and lifestyle categories, including running, football, basketball, training and outdoor activities, as well as casual and fashion-oriented markets.

Founded in 1949 by Adolf “Adi” Dassler, Adidas is headquartered in Herzogenaurach, Germany. The company sells products under the Adidas brand through wholesale partners, company-operated stores, e-commerce platforms and other direct-to-consumer channels.

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