Movado Group (NYSE:MOV) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Movado Group shares jumped after the company reported quarterly EPS of $0.54, beating the $0.35 consensus estimate, while revenue of $169.75 million also exceeded expectations.
• Analysts remain broadly positive, with a consensus “Buy” rating and an average price target of $40; BWS Financial reiterated its Buy rating with a $45 target.
• Institutional ownership is substantial at 72.08%, with major investors including BlackRock, Goldman Sachs and JPMorgan increasing or initiating positions in the company.

Movado Group Inc. (NYSE:MOV - Get Free Report)'s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $34.97, but opened at $36.48. Movado Group shares last traded at $36.6240, with a volume of 48,425 shares.

The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.19. The firm had revenue of $169.75 million for the quarter, compared to analyst estimates of $164.20 million. Movado Group had a net margin of 4.70% and a return on equity of 7.13%.

Analyst Upgrades and Downgrades

MOV has been the topic of several research reports. BWS Financial reissued a "buy" rating and set a $45.00 target price on shares of Movado Group in a research note on Monday, July 27th. Northland Securities set a $35.00 target price on Movado Group in a research report on Wednesday, May 27th. Zacks Research upgraded shares of Movado Group from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 29th. Finally, Weiss Ratings cut shares of Movado Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, May 28th. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Movado Group currently has a consensus rating of "Buy" and an average target price of $40.00.

Hedge Funds Weigh In On Movado Group

A number of institutional investors have recently modified their holdings of MOV. BlackRock Inc. purchased a new stake in shares of Movado Group during the second quarter worth approximately $52,824,000. Goldman Sachs Group Inc. increased its stake in Movado Group by 212.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 671,397 shares of the company's stock valued at $11,226,000 after buying an additional 456,727 shares during the period. Bank of New York Mellon Corp purchased a new position in Movado Group during the 2nd quarter worth $6,664,000. Empowered Funds LLC acquired a new stake in shares of Movado Group in the 2nd quarter worth $4,063,000. Finally, JPMorgan Chase & Co. lifted its stake in shares of Movado Group by 153.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 161,178 shares of the company's stock worth $2,458,000 after acquiring an additional 97,566 shares during the period. 72.08% of the stock is owned by institutional investors and hedge funds.

Movado Group Stock Up 2.7%

The company's fifty day moving average price is $37.55 and its two-hundred day moving average price is $31.06. The firm has a market cap of $793.14 million, a PE ratio of 25.66 and a beta of 0.97.

About Movado Group

Movado Group, Inc is a global designer, manufacturer and distributor of watches and related jewelry products. The company's portfolio encompasses both owned and licensed brands, offering a wide range of timepieces from luxury to accessible price points. Major owned brands include Movado, Concord, and Ebel, alongside newer acquisitions such as MVMT and Olivia Burton. In addition, Movado Group holds licensing agreements to produce watches under fashion names like Hugo Boss, Tommy Hilfiger, Coach, Lacoste and Scuderia Ferrari.

Movado Group's product line spans classic dress watches, sport and dive models, fashion-forward designs and limited-edition collections.

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