Escalade (NASDAQ:ESCA) Share Price Breaks Below 200-Day Moving Average - Here's Why

Key Points

• Escalade shares fell below their 200-day moving average, reaching $18.52 before last trading at $19.26. The stock’s 50-day average is $20.22, while its market capitalization is approximately $265 million.
• Despite the technical weakness, analysts remain positive: Zacks Research upgraded Escalade to “strong buy,” and the company has a consensus “Strong Buy” rating. Escalade also recently exceeded quarterly earnings expectations, reporting $0.68 EPS versus a $0.16 estimate.
• The company declared a quarterly dividend of $0.1525, equivalent to $0.61 annually and a 3.2% yield. However, insiders sold 41,227 shares worth about $872,743 over the past three months.

Escalade, Incorporated (NASDAQ:ESCA - Get Free Report) passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $19.06 and traded as low as $18.52. Escalade shares last traded at $19.26, with a volume of 23,335 shares changing hands.

Analysts Set New Price Targets

A number of analysts have recently issued reports on ESCA shares. Zacks Research raised Escalade from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 6th. Weiss Ratings raised Escalade from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company's stock. Based on data from MarketBeat.com, Escalade has a consensus rating of "Strong Buy".

Escalade Trading Up 0.6%

The firm has a market capitalization of $265.21 million, a price-to-earnings ratio of 11.53 and a beta of 0.52. The company has a fifty day moving average price of $20.22 and a two-hundred day moving average price of $19.06.

Escalade (NASDAQ:ESCA - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.16 by $0.52. Escalade had a return on equity of 13.11% and a net margin of 9.46%.The firm had revenue of $57.70 million during the quarter, compared to analysts' expectations of $57.60 million. As a group, equities research analysts expect that Escalade, Incorporated will post 1.56 earnings per share for the current year.

Escalade Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Tuesday, October 6th will be issued a $0.1525 dividend. This represents a $0.61 annualized dividend and a yield of 3.2%. The ex-dividend date is Tuesday, October 6th. Escalade's dividend payout ratio is presently 36.53%.

Insiders Place Their Bets

In other news, Director Edward Williams sold 2,373 shares of Escalade stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $20.99, for a total transaction of $49,809.27. Following the transaction, the director owned 129,452 shares in the company, valued at $2,717,197.48. The trade was a 1.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Stephen Wawrin sold 3,177 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $21.40, for a total transaction of $67,987.80. Following the transaction, the chief financial officer directly owned 45,000 shares in the company, valued at approximately $963,000. The trade was a 6.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 41,227 shares of company stock valued at $872,743 in the last three months. 33.14% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Escalade

A number of institutional investors have recently bought and sold shares of the company. Deutsche Bank AG purchased a new stake in shares of Escalade in the 2nd quarter valued at approximately $156,000. Bank of America Corp DE raised its position in shares of Escalade by 13.9% during the 1st quarter. Bank of America Corp DE now owns 10,442 shares of the company's stock valued at $179,000 after buying an additional 1,271 shares during the period. Hennion & Walsh Asset Management Inc. purchased a new stake in shares of Escalade during the 2nd quarter valued at approximately $208,000. Hillsdale Investment Management Inc. acquired a new position in Escalade in the first quarter valued at approximately $311,000. Finally, Royal Bank of Canada lifted its holdings in Escalade by 3.4% in the first quarter. Royal Bank of Canada now owns 20,033 shares of the company's stock valued at $344,000 after acquiring an additional 661 shares during the last quarter. 65.22% of the stock is owned by hedge funds and other institutional investors.

About Escalade

Escalade, Inc is a sporting goods manufacturer and distributor headquartered in Evansville, Indiana. The company develops, produces and markets recreational equipment and accessories for consumers, schools, clubs and other organizations.

Its product portfolio includes table tennis equipment, darts and dart accessories, pickleball products, basketball goals, indoor and outdoor games, and related sporting goods. Escalade markets products under several brands, including STIGA, Onix, Goalrilla, Harrows, Accudart and Triumph.

Escalade sells its products through sporting goods retailers, specialty dealers, mass merchants, e-commerce channels and distributors.

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