Levi Strauss & Co. (NYSE:LEVI) Trading Down 3.9% - What's Next?

Key Points

• Levi Strauss shares fell 3.9% to about $20.87 on unusually light volume, trading below both its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with 12 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $27.43.
• The company reported quarterly EPS and revenue above expectations, raised its quarterly dividend to $0.16, and institutional investors own approximately 69.14% of outstanding shares; insiders have sold roughly $19.2 million of stock over the past 90 days.

Shares of Levi Strauss & Co. (NYSE:LEVI - Get Free Report) dropped 3.9% on Tuesday . The stock traded as low as $20.90 and last traded at $20.8650. Approximately 330,070 shares changed hands during trading, a decline of 88% from the average daily volume of 2,657,131 shares. The stock had previously closed at $21.72.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on LEVI shares. Weiss Ratings reissued a "buy (b-)" rating on shares of Levi Strauss & Co. in a research note on Monday, August 3rd. Barclays lifted their target price on shares of Levi Strauss & Co. from $26.00 to $27.00 and gave the company an "overweight" rating in a report on Friday, July 10th. Wells Fargo & Company reissued an "equal weight" rating and issued a $25.00 target price on shares of Levi Strauss & Co. in a research report on Tuesday, July 28th. UBS Group restated a "buy" rating and set a $34.00 price target on shares of Levi Strauss & Co. in a research note on Thursday, July 9th. Finally, TD Cowen restated a "buy" rating and set a $28.00 price target on shares of Levi Strauss & Co. in a research report on Wednesday, May 27th. Twelve investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $27.43.

Levi Strauss & Co. Stock Down 3.8%

The company has a quick ratio of 0.98, a current ratio of 1.60 and a debt-to-equity ratio of 0.46. The stock has a market cap of $8.05 billion, a price-to-earnings ratio of 12.89, a PEG ratio of 1.42 and a beta of 1.33. The business's fifty day moving average is $23.87 and its two-hundred day moving average is $22.22.

Levi Strauss & Co. (NYSE:LEVI - Get Free Report) last released its earnings results on Wednesday, July 8th. The blue-jean maker reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.04. Levi Strauss & Co. had a net margin of 9.66% and a return on equity of 25.79%. The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.52 billion. During the same period in the prior year, the business earned $0.22 EPS. The firm's quarterly revenue was up 8.0% on a year-over-year basis. Levi Strauss & Co. has set its FY 2026 guidance at 1.460-1.520 EPS. Equities analysts forecast that Levi Strauss & Co. will post 1.54 earnings per share for the current fiscal year.

Levi Strauss & Co. Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 5th. Stockholders of record on Wednesday, July 22nd were paid a $0.16 dividend. The ex-dividend date was Wednesday, July 22nd. This is an increase from Levi Strauss & Co.'s previous quarterly dividend of $0.14. This represents a $0.64 annualized dividend and a dividend yield of 3.1%. Levi Strauss & Co.'s payout ratio is 39.51%.

Insider Buying and Selling

In other Levi Strauss & Co. news, EVP Harmit J. Singh sold 98,144 shares of the stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $24.22, for a total value of $2,377,047.68. Following the sale, the executive vice president owned 98,747 shares of the company's stock, valued at $2,391,652.34. This trade represents a 49.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Margaret E. Haas sold 47,721 shares of Levi Strauss & Co. stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $24.01, for a total value of $1,145,781.21. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 796,009 shares of company stock valued at $19,181,538. 1.08% of the stock is currently owned by company insiders.

Institutional Trading of Levi Strauss & Co.

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Levi Strauss & Co. by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 9,320,747 shares of the blue-jean maker's stock valued at $193,312,000 after purchasing an additional 342,009 shares in the last quarter. Bank of New York Mellon Corp raised its stake in Levi Strauss & Co. by 462.4% in the first quarter. Bank of New York Mellon Corp now owns 4,839,861 shares of the blue-jean maker's stock valued at $89,489,000 after buying an additional 3,979,223 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in Levi Strauss & Co. by 44.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 4,243,680 shares of the blue-jean maker's stock valued at $88,014,000 after buying an additional 1,296,474 shares in the last quarter. Balyasny Asset Management L.P. lifted its holdings in Levi Strauss & Co. by 9.3% during the 3rd quarter. Balyasny Asset Management L.P. now owns 3,457,702 shares of the blue-jean maker's stock worth $80,564,000 after buying an additional 294,053 shares during the last quarter. Finally, California State Teachers Retirement System lifted its holdings in Levi Strauss & Co. by 2,316.8% during the 2nd quarter. California State Teachers Retirement System now owns 2,593,816 shares of the blue-jean maker's stock worth $64,404,000 after buying an additional 2,486,491 shares during the last quarter. Institutional investors and hedge funds own 69.14% of the company's stock.

About Levi Strauss & Co.

Levi Strauss & Co is a global apparel company best known for its denim jeans and casual wear. Founded in 1853 in San Francisco by Bavarian immigrant Levi Strauss, the company pioneered the modern blue jean with the introduction of rivet-reinforced work pants. Over its more than 160-year history, Levi Strauss has evolved into a lifestyle brand, offering a broad portfolio that includes denim for men, women and children, as well as tops, outerwear, footwear and accessories.

The company's flagship label, Levi's®, is recognized worldwide for its iconic styles such as the 501® Original Fit Jeans, while additional brands, including Dockers®, Target core metric, and Denizen® by Levi's, cater to diverse price points and consumer segments.

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