Fossil Group (NASDAQ:FOSL) Stock Price Down 8.5% - Time to Sell?

Key Points

• Fossil shares fell 8.5% to about $9.12, on trading volume roughly 56% below the stock’s average daily volume.
• Third-quarter results beat expectations: EPS was $0.19 versus analysts’ forecast of a $0.04 loss, while revenue reached $271.2 million and sales returned to growth for the first time in four years.
• Analyst views are mixed: MarketBeat reports a “Moderate Buy” consensus and a $9.25 average price target, while one analysis cautioned that the recent rally may already reflect the strong results.

Fossil Group, Inc. (NASDAQ:FOSL - Get Free Report) shares dropped 8.5% on Thursday. The company traded as low as $9.14 and last traded at $9.1190. Approximately 373,122 shares were traded during mid-day trading, a decline of 56% from the average daily volume of 844,019 shares. The stock had previously closed at $9.97.

More Fossil Group News

Investors following FOSL have been watching these news items:

• Positive Sentiment: Fossil reported third-quarter EPS of $0.19, ahead of the roughly $0.04 loss analysts expected, and revenue of $271.2 million versus expectations of $248.7 million. Sales returned to growth for the first time in four years, supporting management’s view that its turnaround is ahead of plan. Fossil Group Q3 results
• Neutral Sentiment: Unusually high call-option activity suggests traders are positioning for further volatility, but options activity does not establish that the rally is supported by fundamentals. Fossil options activity
• Negative Sentiment: A Seeking Alpha analysis argues the strong results may already be priced in after the stock’s rally, maintaining a Hold view. This valuation caution could encourage profit-taking despite the improved results. Seeking Alpha analysis

Wall Street Analyst Weigh In

Several research firms recently commented on FOSL. Weiss Ratings restated a "sell (d-)" rating on shares of Fossil Group in a report on Thursday, October 15th. Northland Securities set a $8.00 price objective on shares of Fossil Group in a research note on Thursday, August 13th. Lake Street Capital began coverage on shares of Fossil Group in a research report on Wednesday, October 7th. They issued a "buy" rating and a $10.00 target price for the company. Finally, Craig Hallum started coverage on shares of Fossil Group in a research note on Thursday, September 10th. They set a "buy" rating and a $12.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Fossil Group currently has a consensus rating of "Moderate Buy" and an average price target of $9.25.

Fossil Group Price Performance

The company has a market capitalization of $545.02 million, a PE ratio of -27.97 and a beta of 1.61. The company has a debt-to-equity ratio of 2.74, a quick ratio of 1.05 and a current ratio of 1.76. The stock has a 50 day moving average price of $6.47 and a two-hundred day moving average price of $4.98.

Fossil Group (NASDAQ:FOSL - Get Free Report) last announced its quarterly earnings results on Tuesday, November 10th. The accessories brand company reported $0.19 EPS for the quarter, beating the consensus estimate of ($0.04) by $0.23. Fossil Group had a negative return on equity of 7.75% and a negative net margin of 1.86%. The business had revenue of $271.20 million during the quarter, compared to analysts' expectations of $248.66 million. During the same quarter in the previous year, the business posted ($0.76) EPS. Equities analysts forecast that Fossil Group, Inc. will post -0.04 earnings per share for the current year.

Insider Buying and Selling

In other Fossil Group news, Director Pamela J. Edwards purchased 7,208 shares of the company's stock in a transaction dated Thursday, August 20th. The shares were bought at an average price of $5.58 per share, for a total transaction of $40,220.64. Following the purchase, the director directly owned 50,251 shares in the company, valued at $280,400.58. This trade represents a 16.75% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. 3.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fossil Group

Several institutional investors and hedge funds have recently modified their holdings of the business. Nantahala Capital Management LLC bought a new stake in Fossil Group in the second quarter worth $22,791,230. BlackRock Inc. bought a new position in Fossil Group during the second quarter valued at about $15,263,000. Miller Value Partners LLC acquired a new stake in shares of Fossil Group in the second quarter worth about $8,874,000. Fund 1 Investments LLC acquired a new stake in shares of Fossil Group in the second quarter worth about $2,223,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Fossil Group during the 2nd quarter worth about $1,053,000. Institutional investors and hedge funds own 61.14% of the company's stock.

About Fossil Group

Fossil Group designs, develops, markets and distributes fashion accessories, including watches, handbags, small leather goods, jewelry and other accessories. Its products are sold under company-owned brands such as Fossil, Skagen, Michele and Zodiac, as well as through licensing agreements with third-party brands. Founded in 1984, the company has built its business around combining watchmaking with fashion-oriented design. It serves customers internationally through wholesale partners, retail stores and online channels.

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