Hennes & Mauritz (OTCMKTS:HNNMY) Shares Gap Down - Here's Why

Key Points

• Hennes & Mauritz shares fell 4.8% at the open, dropping from a prior close of $3.62 to $3.445 before last trading at $3.44.
• Analyst sentiment remains cautious: four analysts rate the stock Hold and three rate it Sell, producing a consensus rating of “Reduce.”
• H&M’s latest quarterly earnings per share came in at $0.05, below the $0.06 estimate, although revenue of $5.90 billion exceeded forecasts of $5.79 billion.

Hennes & Mauritz AB (OTCMKTS:HNNMY - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $3.62, but opened at $3.4450. Hennes & Mauritz shares last traded at $3.44, with a volume of 9,740 shares traded.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Pareto Securities lowered shares of Hennes & Mauritz to a "sell" rating in a report on Friday, June 26th. Zacks Research upgraded shares of Hennes & Mauritz from a "strong sell" rating to a "hold" rating in a research report on Friday, August 14th. Finally, Citigroup reaffirmed a "neutral" rating on shares of Hennes & Mauritz in a research report on Tuesday, August 18th. Four equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce".

Hennes & Mauritz Price Performance

The stock has a 50 day moving average price of $3.54 and a two-hundred day moving average price of $3.60. The firm has a market cap of $24.07 billion, a PE ratio of 21.43 and a beta of 1.12. The company has a quick ratio of 0.53, a current ratio of 1.07 and a debt-to-equity ratio of 1.31.

Hennes & Mauritz (OTCMKTS:HNNMY - Get Free Report) last released its quarterly earnings results on Thursday, June 25th. The company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.06 by ($0.01). The business had revenue of $5.90 billion during the quarter, compared to analyst estimates of $5.79 billion. Hennes & Mauritz had a return on equity of 31.51% and a net margin of 5.55%. As a group, equities analysts expect that Hennes & Mauritz AB will post 0.17 earnings per share for the current year.

Hennes & Mauritz Company Profile

Hennes & Mauritz AB, commonly known as H&M, is a Swedish multinational fashion retailer that designs, sources and sells ready-to-wear clothing, accessories and home textiles. The company traces its roots to 1947, when Erling Persson opened a women's clothing store called Hennes ("hers") in Västerås, Sweden; the business expanded into menswear after the acquisition of a Stockholm-based retailer, Mauritz Widforss, in the late 1960s, which led to the Hennes & Mauritz name. Today the company is headquartered in Stockholm and operates a global retail business built around multiple branded concepts.

H&M's core activities include product design, sourcing and retailing of fashion for women, men, teenagers and children, as well as home goods under its H&M Home line.

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