Columbia Sportswear (NASDAQ:COLM) Reaches New 52-Week High - Still a Buy?

Key Points

• Columbia Sportswear reached a 52-week high, trading as high as $72.92, up from its prior close of $70.43.
• Quarterly results beat expectations: earnings were $1.66 per share versus a $1.28 consensus, while revenue of $962.6 million topped forecasts and rose 2% year over year.
• Analyst sentiment remains cautious overall: the consensus rating is Hold, with an average price target of $66.40—below the stock’s latest price. The company also declared a $0.30 quarterly dividend.

Columbia Sportswear Company (NASDAQ:COLM - Get Free Report)'s share price hit a new 52-week high on Monday. The company traded as high as $72.92 and last traded at $72.8150, with a volume of 350,360 shares trading hands. The stock had previously closed at $70.43.

Wall Street Analyst Weigh In

Several research firms have commented on COLM. Robert W. Baird set a $65.00 price objective on Columbia Sportswear in a research note on Friday, July 31st. BTIG Research increased their target price on Columbia Sportswear from $80.00 to $83.00 and gave the company a "buy" rating in a report on Friday, October 30th. Weiss Ratings upgraded Columbia Sportswear from a "sell (d+)" rating to a "hold (c)" rating in a research report on Monday, August 17th. Citigroup reaffirmed a "neutral" rating and issued a $68.00 price target (up from $67.00) on shares of Columbia Sportswear in a research note on Wednesday, July 22nd. Finally, Wall Street Zen upgraded Columbia Sportswear from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $66.40.

Columbia Sportswear Stock Performance

The firm has a market capitalization of $3.73 billion, a price-to-earnings ratio of 15.98 and a beta of 0.88. The business has a 50 day simple moving average of $59.59 and a 200-day simple moving average of $60.15.

Columbia Sportswear (NASDAQ:COLM - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The textile maker reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.38. Columbia Sportswear had a net margin of 6.97% and a return on equity of 11.71%. The firm had revenue of $962.58 million for the quarter, compared to analysts' expectations of $944.91 million. During the same quarter in the previous year, the company posted $1.41 EPS. The company's revenue was up 2.0% compared to the same quarter last year. Equities analysts predict that Columbia Sportswear Company will post 3.91 earnings per share for the current fiscal year.

Columbia Sportswear Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Thursday, November 19th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Thursday, November 19th. Columbia Sportswear's payout ratio is presently 26.32%.

Insider Activity at Columbia Sportswear

In related news, insider Joseph Boyle sold 19,129 shares of the company's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $70.47, for a total value of $1,348,020.63. Following the transaction, the insider directly owned 2,776,714 shares in the company, valued at approximately $195,675,035.58. This represents a 0.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, President Peter Bragdon sold 375 shares of the stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $70.81, for a total value of $26,553.75. Following the completion of the transaction, the president owned 28,950 shares of the company's stock, valued at $2,049,949.50. The trade was a 1.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 26,361 shares of company stock worth $1,844,073. Insiders own 51.90% of the company's stock.

Hedge Funds Weigh In On Columbia Sportswear

A number of hedge funds have recently modified their holdings of the business. Diversified Trust Co boosted its stake in shares of Columbia Sportswear by 126.3% in the third quarter. Diversified Trust Co now owns 16,870 shares of the textile maker's stock valued at $969,000 after purchasing an additional 9,415 shares during the period. Pictet Asset Management Holding SA grew its holdings in shares of Columbia Sportswear by 16.5% in the third quarter. Pictet Asset Management Holding SA now owns 4,324 shares of the textile maker's stock valued at $248,000 after purchasing an additional 614 shares in the last quarter. CenterBook Partners LP purchased a new stake in Columbia Sportswear during the 3rd quarter worth approximately $822,000. State of Wyoming increased its stake in Columbia Sportswear by 357.0% during the 3rd quarter. State of Wyoming now owns 10,708 shares of the textile maker's stock worth $615,000 after buying an additional 8,365 shares during the period. Finally, Signaturefd LLC increased its stake in Columbia Sportswear by 63.4% during the 3rd quarter. Signaturefd LLC now owns 1,716 shares of the textile maker's stock worth $99,000 after buying an additional 666 shares during the period. 47.76% of the stock is currently owned by hedge funds and other institutional investors.

About Columbia Sportswear

Columbia Sportswear Company designs, sources, markets and distributes outdoor and active-lifestyle apparel, footwear, accessories and equipment. Its products serve activities such as hiking, skiing, fishing and other outdoor pursuits, as well as everyday wear.

The company's portfolio includes the Columbia, SOREL, Mountain Hardwear and prAna brands. Its offerings range from jackets, shirts and pants to boots, shoes, backpacks and other outdoor accessories.

Founded in 1938 as a hat distributor in Portland, Oregon, Columbia Sportswear has grown into a global business.

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