Rocky Brands (NASDAQ:RCKY) Share Price Breaks Above 200-Day Moving Average - Time to Sell?

Key Points

• Rocky Brands shares moved above their 200-day moving average, reaching $45.69 and last trading at $44.69 versus the $41.60 long-term average.
• Analyst sentiment remains cautious: the consensus rating is Hold with an average price target of $50, despite some firms upgrading the stock to Buy or Strong Buy.
• The company reported strong quarterly results, earning $1.90 per share versus the $0.35 estimate and generating $118.37 million in revenue. Rocky Brands also pays a $0.17 quarterly dividend, while insiders have sold more than 15,000 shares over the past three months.

Rocky Brands, Inc. (NASDAQ:RCKY - Get Free Report)'s share price crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $41.60 and traded as high as $45.69. Rocky Brands shares last traded at $44.69, with a volume of 78,779 shares.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on RCKY. Weiss Ratings raised Rocky Brands from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, August 6th. BTIG Research reaffirmed a "neutral" rating on shares of Rocky Brands in a research note on Wednesday, July 29th. Robert W. Baird reiterated a "neutral" rating and set a $50.00 price objective on shares of Rocky Brands in a research report on Monday, September 14th. Finally, Wall Street Zen raised shares of Rocky Brands from a "buy" rating to a "strong-buy" rating in a research note on Sunday, August 9th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Rocky Brands currently has a consensus rating of "Hold" and an average target price of $50.00.

Rocky Brands Stock Performance

The stock has a market cap of $334.73 million, a price-to-earnings ratio of 11.70 and a beta of 2.36. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.97 and a quick ratio of 1.12. The stock's 50-day moving average is $45.52 and its 200-day moving average is $41.60.

Rocky Brands (NASDAQ:RCKY - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The textile maker reported $1.90 earnings per share for the quarter, beating the consensus estimate of $0.35 by $1.55. Rocky Brands had a return on equity of 12.28% and a net margin of 5.72%.The company had revenue of $118.37 million during the quarter, compared to the consensus estimate of $110.08 million.

Rocky Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.5%. The ex-dividend date was Tuesday, September 1st. Rocky Brands's dividend payout ratio is presently 17.80%.

Insiders Place Their Bets

In related news, Director Tracie Winbigler sold 3,000 shares of the stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $47.45, for a total transaction of $142,350.00. Following the transaction, the director directly owned 14,246 shares in the company, valued at approximately $675,972.70. This represents a 17.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Curtis Loveland sold 3,483 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $50.54, for a total value of $176,030.82. Following the completion of the sale, the insider directly owned 92,610 shares in the company, valued at approximately $4,680,509.40. The trade was a 3.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 15,483 shares of company stock valued at $763,214. 7.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rocky Brands

Several hedge funds have recently modified their holdings of RCKY. BlackRock Inc. purchased a new stake in shares of Rocky Brands during the 2nd quarter valued at $21,559,000. Tieton Capital Management LLC acquired a new stake in shares of Rocky Brands during the 2nd quarter worth $4,000,000. Aristides Capital LLC raised its position in shares of Rocky Brands by 264.6% in the 1st quarter. Aristides Capital LLC now owns 112,744 shares of the textile maker's stock worth $4,365,000 after buying an additional 81,822 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Rocky Brands in the 2nd quarter worth $2,856,000. Finally, Empowered Funds LLC acquired a new position in Rocky Brands in the second quarter valued at $2,219,000. 75.06% of the stock is owned by institutional investors and hedge funds.

Rocky Brands Company Profile

Rocky Brands, Inc is an American footwear and apparel company headquartered in Nelsonville, Ohio. The company designs, develops, manufactures, and markets footwear for outdoor, work, western, military, public-safety, and lifestyle uses.

Its portfolio includes Rocky outdoor and work footwear, Georgia Boot work and western products, Durango western and lifestyle boots, and Lehigh Safety Shoe products. The company offers boots and shoes designed for activities and occupations requiring durability, protection, traction, and comfort, along with related apparel and accessories.

Founded in 1932 as the William Brooks Shoe Company, Rocky Brands has expanded from its Ohio manufacturing roots into a multichannel footwear business.

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