V.F. (NYSE:VFC) Shares Gap Up - Here's Why

Key Points

• V.F. shares gapped higher from a $15.79 close to a $16.67 open, supported by Barclays’ bullish view of the company’s turnaround and JPMorgan’s upgrade from Underweight to Neutral.
• Analyst sentiment improved further as Piper Sandler upgraded V.F. to Overweight with a $20 target, while Barclays raised its target to $24. The consensus rating remains Hold, with an average price target of $17.92.
• Fundamentals remain challenging: quarterly revenue fell 5.2% year over year, and adjusted EPS of $(0.27) missed estimates of $(0.22). The stock remains below its 200-day moving average despite recent momentum and favorable estimate revisions.

Shares of V.F. Corporation (NYSE:VFC - Get Free Report) gapped up prior to trading on Tuesday. The stock had previously closed at $15.79, but opened at $16.67. V.F. shares last traded at $16.0040, with a volume of 3,300,973 shares traded.

More V.F. News

Here are the key news stories impacting V.F. this week:

• Positive Sentiment: Barclays sees V.F.’s turnaround as undervalued. The bank expressed optimism about the company’s restructuring and recovery prospects, arguing that the market may not fully reflect potential value from the turnaround. V.F. Rises On Barclays Optimism As Its Turnaround Still Looks Undervalued
• Positive Sentiment: JPMorgan upgraded VFC from Underweight to Neutral. The change removes a notably bearish rating and helped reinforce buying interest, though a Neutral rating indicates that JPMorgan does not yet expect significant outperformance. JP Morgan upgrades VF to neutral from underweight
• Positive Sentiment: Recent trading momentum and earnings-estimate trends are encouraging. VFC jumped on above-average volume in the prior session, while Zacks cited favorable estimate revisions as a possible sign that the stock’s strength could continue. Strength Seen in V.F. (VFC): Can Its 5.3% Jump Turn into More Strength?
• Negative Sentiment: Fundamentals remain challenging. V.F.’s latest reported quarter showed a year-over-year revenue decline and an adjusted loss that was worse than analysts expected. The stock also remains below its 200-day moving average, highlighting continued investor caution despite the analyst-driven rebound.

Analyst Upgrades and Downgrades

VFC has been the topic of a number of research analyst reports. Piper Sandler upgraded shares of V.F. from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $16.00 to $20.00 in a research note on Tuesday. Barclays raised their price target on shares of V.F. from $23.00 to $24.00 and gave the stock an "overweight" rating in a research note on Monday. UBS Group lowered their price target on shares of V.F. from $18.00 to $16.00 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Needham & Company LLC lowered their price target on shares of V.F. from $25.00 to $21.00 and set a "buy" rating on the stock in a report on Wednesday, July 29th. Finally, Wells Fargo & Company dropped their price objective on V.F. from $18.00 to $16.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, V.F. currently has a consensus rating of "Hold" and an average target price of $17.92.

V.F. Stock Up 0.2%

The firm has a market capitalization of $6.22 billion, a P/E ratio of 22.92, a PEG ratio of 0.79 and a beta of 1.56. The company has a debt-to-equity ratio of 1.70, a quick ratio of 0.78 and a current ratio of 1.43. The stock has a 50 day moving average of $13.98 and a 200-day moving average of $16.19.

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). The business had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.64 billion. V.F. had a return on equity of 18.91% and a net margin of 2.88%. V.F.'s revenue for the quarter was down 5.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.24) EPS. Research analysts predict that V.F. Corporation will post 1.08 earnings per share for the current fiscal year.

V.F. Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Investors of record on Thursday, September 10th were paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Thursday, September 10th. V.F.'s dividend payout ratio is presently 52.17%.

Insider Buying and Selling

In related news, Director Richard Carucci bought 20,000 shares of the company's stock in a transaction on Thursday, August 13th. The shares were purchased at an average price of $14.73 per share, for a total transaction of $294,600.00. Following the completion of the transaction, the director directly owned 356,215 shares in the company, valued at approximately $5,247,046.95. The trade was a 5.95% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Bracken Darrell purchased 32,894 shares of the business's stock in a transaction dated Friday, July 31st. The stock was bought at an average cost of $14.98 per share, with a total value of $492,752.12. Following the completion of the acquisition, the insider directly owned 1,402,109 shares of the company's stock, valued at approximately $21,003,592.82. This trade represents a 2.40% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 1.54% of the company's stock.

Institutional Trading of V.F.

A number of institutional investors have recently added to or reduced their stakes in VFC. NorthCrest Asset Manangement LLC boosted its position in shares of V.F. by 25.1% in the third quarter. NorthCrest Asset Manangement LLC now owns 27,025 shares of the textile maker's stock valued at $393,000 after acquiring an additional 5,417 shares during the period. Riversedge Advisors LLC purchased a new position in V.F. during the third quarter valued at approximately $171,000. Wedmont Private Capital purchased a new position in V.F. during the third quarter valued at approximately $224,000. LifeGoal Investments LLC bought a new stake in V.F. during the 3rd quarter worth approximately $191,000. Finally, Parrish Capital LLC increased its holdings in V.F. by 37.2% during the 3rd quarter. Parrish Capital LLC now owns 60,101 shares of the textile maker's stock worth $845,000 after acquiring an additional 16,303 shares during the period. Hedge funds and other institutional investors own 86.84% of the company's stock.

V.F. Company Profile

V.F. Corporation NYSE: VFC is a global apparel, footwear and accessories company. Its portfolio includes well-known outdoor, active and workwear brands such as The North Face, Vans, Timberland and Dickies, which offer products ranging from outdoor clothing and hiking footwear to casual apparel, skate shoes and workwear.

The company sells its products through wholesale customers, brand-operated stores, e-commerce platforms and other digital channels. V.F. serves consumers in markets worldwide, with operations and distribution spanning North America, Europe, Asia-Pacific and other international regions.

Founded in 1899 as a manufacturer of gloves and mittens, the company later expanded into apparel and became known as Vanity Fair Mills before adopting the V.F.

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