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

Key Points

• Hennes & Mauritz shares opened higher, rising from a prior close of $3.549 to $3.75, although trading volume was light at 1,332 shares.
• Analyst sentiment remains cautious: four analysts rate the stock Hold and three rate it Sell, resulting in a consensus rating of “Reduce.” Zacks recently upgraded the shares from Strong Sell to Hold, while Citigroup maintained a Neutral rating.
• The company reported quarterly EPS of $0.05, in line with estimates, while revenue of $5.98 billion exceeded the $5.84 billion consensus forecast. H&M had a 5.94% net margin and analysts expect $0.17 EPS for the current year.

Hennes & Mauritz AB (OTCMKTS:HNNMY - Get Free Report) gapped up prior to trading on Tuesday. The stock had previously closed at $3.5490, but opened at $3.75. Hennes & Mauritz shares last traded at $3.75, with a volume of 1,332 shares changing hands.

Analysts Set New Price Targets

HNNMY has been the subject of a number of analyst reports. Zacks Research raised shares of Hennes & Mauritz from a "strong sell" rating to a "hold" rating in a report on Friday, August 14th. Citigroup reaffirmed a "neutral" rating on shares of Hennes & Mauritz in a research note on Tuesday, August 18th. Four equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Reduce".

Hennes & Mauritz Stock Performance

The stock has a market capitalization of $24.95 billion, a P/E ratio of 20.90 and a beta of 1.17. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.59 and a current ratio of 1.13. The company's fifty day simple moving average is $3.40 and its two-hundred day simple moving average is $3.60.

Hennes & Mauritz (OTCMKTS:HNNMY - Get Free Report) last issued its quarterly earnings data on Wednesday, September 23rd. The company reported $0.05 EPS for the quarter, meeting analysts' consensus estimates of $0.05. Hennes & Mauritz had a return on equity of 33.70% and a net margin of 5.94%. The firm had revenue of $5.98 billion for the quarter, compared to analyst estimates of $5.84 billion. As a group, equities analysts forecast that Hennes & Mauritz AB will post 0.17 EPS for the current year.

About Hennes & Mauritz

Hennes & Mauritz AB, commonly known as H&M Group, is a Swedish fashion and retail company that designs, sources and sells clothing, accessories, footwear, beauty products and home furnishings. Its brands serve a broad range of customers through physical stores, digital platforms and e-commerce channels.

The company's portfolio includes H&M, COS, Weekday, & Other Stories, ARKET and other fashion and lifestyle concepts. H&M is known for offering trend-focused apparel and accessories, while the group's other brands generally target distinct segments ranging from contemporary and premium fashion to home goods and resale.

H&M was founded in 1947 by Erling Persson in Västerås, Sweden, originally under the name Hennes.

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