Citi Trends (NASDAQ:CTRN) Shares Gap Down - Here's What Happened

Key Points

• Citi Trends shares fell sharply: The stock opened at $65.38, down from its prior close of $74.35, and was last trading around $71.02, a decline of roughly 6.4%.
• Analyst sentiment remains positive: DA Davidson raised its price target to $73 and assigned a Buy rating, while the broader analyst consensus is “Moderate Buy” with an average target of $73.
• Quarterly results exceeded expectations: Citi Trends reported earnings of $0.05 per share, beating the consensus estimate of a $0.32 loss per share, despite a modest 1.42% net margin.

Citi Trends, Inc. (NASDAQ:CTRN - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $74.35, but opened at $65.38. Citi Trends shares last traded at $71.0210, with a volume of 79,089 shares traded.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Wall Street Zen upgraded shares of Citi Trends from a "hold" rating to a "buy" rating in a research note on Monday, June 29th. Weiss Ratings upgraded shares of Citi Trends from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, May 29th. Finally, DA Davidson boosted their price objective on Citi Trends from $68.00 to $73.00 and gave the company a "buy" rating in a research note on Thursday, June 25th. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $73.00.

Citi Trends Trading Down 6.4%

The firm has a market cap of $579.64 million, a P/E ratio of 50.13 and a beta of 1.82. The stock's fifty day moving average is $64.73 and its two-hundred day moving average is $52.44.

Citi Trends (NASDAQ:CTRN - Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The company reported $0.05 EPS for the quarter, beating analysts' consensus estimates of ($0.32) by $0.37. Citi Trends had a net margin of 1.42% and a return on equity of 2.09%.

Hedge Funds Weigh In On Citi Trends

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Legal & General Group Plc bought a new stake in shares of Citi Trends during the 2nd quarter valued at about $30,000. Allworth Financial LP bought a new position in shares of Citi Trends in the second quarter worth approximately $31,000. BNP Paribas Financial Markets increased its position in shares of Citi Trends by 143.3% in the third quarter. BNP Paribas Financial Markets now owns 1,051 shares of the company's stock worth $33,000 after purchasing an additional 619 shares during the last quarter. New York State Common Retirement Fund raised its stake in Citi Trends by 175.0% in the fourth quarter. New York State Common Retirement Fund now owns 1,100 shares of the company's stock valued at $46,000 after purchasing an additional 700 shares in the last quarter. Finally, Kemnay Advisory Services Inc. purchased a new stake in Citi Trends in the fourth quarter valued at approximately $51,000.

Citi Trends Company Profile

Citi Trends, Inc NASDAQ: CTRN is an off-price retail apparel chain that focuses on value-priced urban fashion apparel and accessories for men, women, and children. Headquartered in Savannah, Georgia, the company offers a broad assortment of merchandise, including denim, sportswear, activewear, and seasonal styles, complemented by footwear, jewelry, cosmetics, and home goods. Through its purchasing model, Citi Trends sources closeouts, overstocks and canceled orders from name-brand vendors, enabling it to offer trending styles at competitive price points.

The company operates more than 500 stores across the Southeastern and Mid-Atlantic regions of the United States, with typical store footprints of approximately 11,000 square feet.

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