Zumiez (NASDAQ:ZUMZ) Shares Cross Below 50 Day Moving Average - Should You Sell?

Key Points

• Zumiez shares fell below their 50-day moving average, trading as low as $14.24 and last at $14.29, versus a 50-day average of $14.96.
• The company’s latest quarter missed estimates: it reported a loss of $0.17 per share against expectations of a $0.14 loss, while revenue fell 2.5% year over year to $208.96 million.
• Analyst sentiment remains at Hold, while insider Adam Ellis purchased 10,000 shares at an average price of $13.40.

Shares of Zumiez Inc. (NASDAQ:ZUMZ - Get Free Report) passed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $14.96 and traded as low as $14.24. Zumiez shares last traded at $14.29, with a volume of 200,542 shares trading hands.

Analyst Ratings Changes

ZUMZ has been the topic of several recent analyst reports. Weiss Ratings raised Zumiez from a "sell (d)" rating to a "hold (c-)" rating in a research report on Friday, September 11th. Wall Street Zen raised Zumiez from a "strong sell" rating to a "sell" rating in a report on Saturday, October 3rd. Three analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, Zumiez currently has a consensus rating of "Hold".

Zumiez Trading Down 4.5%

The company has a market capitalization of $219.07 million, a price-to-earnings ratio of 19.85 and a beta of 1.04. The company has a 50 day moving average price of $14.96 and a 200 day moving average price of $20.28.

Zumiez (NASDAQ:ZUMZ - Get Free Report) last released its earnings results on Thursday, September 10th. The apparel and footwear maker reported ($0.17) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.03). Zumiez had a net margin of 1.36% and a return on equity of 3.71%. The business had revenue of $208.96 million for the quarter, compared to analyst estimates of $212.11 million. During the same quarter in the previous year, the company posted ($0.06) earnings per share. The business's revenue for the quarter was down 2.5% on a year-over-year basis. Zumiez has set its Q3 2026 guidance at 0.000-0.100 EPS. Equities analysts predict that Zumiez Inc. will post 0.46 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Adam Ellis bought 10,000 shares of the business's stock in a transaction on Friday, September 18th. The shares were purchased at an average price of $13.40 per share, with a total value of $134,000.00. Following the completion of the purchase, the insider owned 83,664 shares of the company's stock, valued at $1,121,097.60. This represents a 13.58% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 24.30% of the company's stock.

Institutional Investors Weigh In On Zumiez

Several hedge funds have recently bought and sold shares of the company. Quantinno Capital Management LP lifted its holdings in Zumiez by 4.8% during the first quarter. Quantinno Capital Management LP now owns 15,139 shares of the apparel and footwear maker's stock worth $335,000 after acquiring an additional 690 shares in the last quarter. New York State Teachers Retirement System acquired a new position in shares of Zumiez during the 1st quarter worth about $27,000. Legal & General Group Plc acquired a new position in shares of Zumiez during the 2nd quarter worth approximately $25,000. Quantbot Technologies LP bought a new position in Zumiez in the 2nd quarter valued at about $31,000. Finally, Integrated Wealth Concepts LLC bought a new stake in shares of Zumiez in the second quarter valued at about $34,000. 95.45% of the stock is currently owned by institutional investors and hedge funds.

Zumiez Company Profile

Zumiez, Inc is a specialty retailer focused on apparel, footwear, accessories and equipment associated with action sports and youth-oriented lifestyle culture. Its merchandise assortment includes clothing, shoes, skateboards, snowboards, technical outerwear and related accessories, along with products from established and emerging brands.

The company sells products through a network of retail stores and e-commerce websites. Zumiez primarily serves customers in the United States and Canada, while its international operations include Europe through Blue Tomato, an action-sports retailer acquired by Zumiez in 2012.

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