V.F. (NYSE:VFC) Hits New 1-Year Low - What's Next?

Key Points

• V.F. shares hit a new 52-week low of $12.94, extending weakness after the company reported an adjusted quarterly loss of $0.27 per share and a 5.2% year-over-year revenue decline.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $18.21, although several firms recently lowered their targets.
• V.F. maintained its quarterly dividend at $0.09 per share, representing a 2.8% yield, while company insiders recently purchased shares and institutional investors own 86.84% of the stock.

Shares of V.F. Corporation (NYSE:VFC - Get Free Report) reached a new 52-week low during trading on Wednesday . The company traded as low as $12.94 and last traded at $13.0150, with a volume of 1339483 shares. The stock had previously closed at $13.20.

Analyst Ratings Changes

A number of research firms recently weighed in on VFC. Citigroup started coverage on shares of V.F. in a research report on Thursday, May 21st. They issued a "neutral" rating and a $18.00 price objective on the stock. Needham & Company LLC cut their target price on V.F. from $25.00 to $21.00 and set a "buy" rating on the stock in a research note on Wednesday, July 29th. Williams Trading set a $19.00 price target on V.F. in a report on Sunday, May 17th. Barclays decreased their price target on V.F. from $24.00 to $23.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, UBS Group cut their price objective on V.F. from $18.00 to $16.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $18.21.

V.F. Stock Performance

The firm has a 50 day moving average of $15.28 and a 200-day moving average of $16.89. The company has a market cap of $5.13 billion, a P/E ratio of 18.91, a PEG ratio of 0.97 and a beta of 1.57. The company has a quick ratio of 0.78, a current ratio of 1.43 and a debt-to-equity ratio of 1.70.

V.F. (NYSE:VFC - Get Free Report) last issued its earnings results on Wednesday, July 29th. The textile maker reported ($0.27) earnings per share for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.05). V.F. had a net margin of 2.88% and a return on equity of 18.91%. The firm had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same period last year, the firm earned ($0.24) earnings per share. The company's revenue for the quarter was down 5.2% on a year-over-year basis. As a group, sell-side analysts anticipate that V.F. Corporation will post 1.07 EPS for the current fiscal year.

V.F. Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 10th will be issued a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 2.8%. The ex-dividend date is Thursday, September 10th. V.F.'s dividend payout ratio is presently 52.17%.

Insider Transactions at V.F.

In other V.F. news, Director Richard Carucci purchased 20,000 shares of V.F. stock in a transaction dated Thursday, August 13th. The stock was acquired at an average price of $14.73 per share, for a total transaction of $294,600.00. Following the acquisition, the director owned 356,215 shares in the company, valued at $5,247,046.95. This trade represents a 5.95% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Bracken Darrell purchased 32,894 shares of the stock in a transaction dated Friday, July 31st. The stock was acquired at an average cost of $14.98 per share, with a total value of $492,752.12. Following the transaction, the insider directly owned 1,402,109 shares in the company, valued at approximately $21,003,592.82. This trade represents a 2.40% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 1.54% of the company's stock.

Institutional Trading of V.F.

Hedge funds have recently bought and sold shares of the stock. Russell Investments Group Ltd. increased its holdings in shares of V.F. by 1.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 578,767 shares of the textile maker's stock valued at $8,352,000 after acquiring an additional 10,881 shares during the period. Handelsbanken Fonder AB boosted its position in V.F. by 19.1% during the fourth quarter. Handelsbanken Fonder AB now owns 112,000 shares of the textile maker's stock valued at $2,025,000 after purchasing an additional 18,000 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in V.F. by 151.6% during the fourth quarter. EverSource Wealth Advisors LLC now owns 6,915 shares of the textile maker's stock valued at $125,000 after purchasing an additional 4,167 shares in the last quarter. Optimize Financial Inc grew its stake in V.F. by 1.5% in the fourth quarter. Optimize Financial Inc now owns 40,379 shares of the textile maker's stock valued at $730,000 after purchasing an additional 580 shares during the last quarter. Finally, New York State Common Retirement Fund raised its holdings in V.F. by 0.8% in the fourth quarter. New York State Common Retirement Fund now owns 540,861 shares of the textile maker's stock worth $9,779,000 after purchasing an additional 4,249 shares in the last quarter. Hedge funds and other institutional investors own 86.84% of the company's stock.

V.F. Company Profile

VF Corporation, commonly branded as VF, is a global apparel and footwear company that develops, markets and distributes a diverse portfolio of consumer brands. Its offerings span outdoor and action sports apparel, footwear and accessories under marquee names such as The North Face, Vans, Timberland, Dickies, JanSport and Smartwool. Through a “house of brands” strategy, VF leverages the unique heritage and design expertise of each label to serve distinct lifestyle and performance segments.

Founded in 1899 in Pennsylvania as the Reading Glove and Mitten Manufacturing Company, VF evolved through a series of acquisitions and strategic expansions to become a leading player in the global apparel industry.

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