National Vision (NASDAQ:EYE) Shares Down 6.5% - Should You Sell?

Key Points

• National Vision shares fell 6.5% to $16.38, trading well below their 50-day and 200-day moving averages. The stock has a $1.29 billion market capitalization and relatively low trading volume on the day.
• Analysts remain generally positive, with seven Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $29.82, substantially above the current price.
• The company exceeded quarterly EPS expectations, reporting $0.25 versus the $0.18 consensus, while revenue rose 2.6% year over year to $498.81 million. Major institutional investors, including BlackRock and Wellington Management, have also built or expanded positions.

National Vision Holdings, Inc. (NASDAQ:EYE - Get Free Report) dropped 6.5% during trading on Tuesday . The company traded as low as $16.34 and last traded at $16.38. Approximately 525,397 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 1,840,360 shares. The stock had previously closed at $17.51.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. Guggenheim set a $27.00 price target on shares of National Vision in a research note on Friday. Morgan Stanley dropped their target price on shares of National Vision from $22.00 to $21.00 and set an "equal weight" rating for the company in a research report on Thursday, August 13th. Roth Capital reissued a "buy" rating and set a $27.00 price target on shares of National Vision in a report on Thursday, August 13th. Weiss Ratings lowered shares of National Vision from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, August 25th. Finally, UBS Group decreased their price target on National Vision from $36.00 to $34.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Seven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $29.82.

National Vision Stock Down 7.1%

The stock has a market cap of $1.29 billion, a price-to-earnings ratio of 26.73, a PEG ratio of 1.37 and a beta of 0.98. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.27 and a current ratio of 0.59. The firm's 50-day simple moving average is $19.49 and its two-hundred day simple moving average is $21.17.

National Vision (NASDAQ:EYE - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported $0.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.07. The company had revenue of $498.81 million for the quarter. National Vision had a net margin of 2.47% and a return on equity of 6.78%. National Vision's revenue for the quarter was up 2.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.18 earnings per share. On average, sell-side analysts expect that National Vision Holdings, Inc. will post 0.65 EPS for the current fiscal year.

Institutional Investors Weigh In On National Vision

A number of institutional investors and hedge funds have recently made changes to their positions in EYE. BlackRock Inc. acquired a new stake in National Vision in the 2nd quarter valued at approximately $230,295,000. William Blair Investment Management LLC bought a new position in shares of National Vision in the 2nd quarter valued at about $90,248,000. Wellington Management Group LLP increased its position in National Vision by 39.6% during the second quarter. Wellington Management Group LLP now owns 7,669,853 shares of the company's stock worth $145,804,000 after buying an additional 2,173,887 shares during the last quarter. Bank of America Corp DE acquired a new stake in National Vision during the 2nd quarter valued at $16,174,000. Finally, Avalon Trust Co acquired a new position in National Vision in the 2nd quarter valued at about $14,481,000.

National Vision Company Profile

National Vision Holdings, Inc NASDAQ: EYE is a U.S.-based optical retailer that provides eye examinations, prescription eyewear, contact lenses and related accessories. The company serves value-conscious consumers through company-operated stores and digital channels.

National Vision operates primarily under the America's Best Contacts & Eyeglasses and Eyeglass World brands. America's Best emphasizes affordable eye exams and bundled eyewear offerings, while Eyeglass World provides prescription glasses, contact lenses and related optical services.

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