Savers Value Village (NYSE:SVV) Shares Gap Up on Earnings Beat

Key Points

• Savers Value Village's stock gapped up from $10.41 to $11.14 following a strong earnings report, with earnings per share of $0.14 surpassing estimates of $0.12.
• Wall Street analysts have raised target prices on the stock, with recommendations ranging from "neutral" to "outperform," and an average target price set at $12.71.
• Insider transactions revealed significant stock sales, including CEO Mark T. Walsh selling 40,000 shares, highlighting active insider trading amidst the stock's positive performance.

Savers Value Village, Inc. (NYSE:SVV - Get Free Report)'s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $10.41, but opened at $11.14. Savers Value Village shares last traded at $10.94, with a volume of 307,830 shares changing hands.

The company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.12 by $0.02. Savers Value Village had a net margin of 2.14% and a return on equity of 8.86%. The firm had revenue of $417.21 million for the quarter, compared to analysts' expectations of $405.75 million. During the same period in the previous year, the firm posted $0.14 EPS. The company's revenue for the quarter was up 7.9% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Northland Capmk upgraded shares of Savers Value Village to a "strong-buy" rating in a research note on Tuesday, June 10th. JPMorgan Chase & Co. upped their target price on shares of Savers Value Village from $9.00 to $11.00 and gave the company a "neutral" rating in a report on Monday, July 28th. Piper Sandler upped their target price on shares of Savers Value Village from $11.00 to $12.00 and gave the company a "neutral" rating in a report on Friday. Wall Street Zen raised shares of Savers Value Village from a "hold" rating to a "buy" rating in a report on Saturday. Finally, The Goldman Sachs Group upped their target price on shares of Savers Value Village from $9.00 to $10.00 and gave the company a "neutral" rating in a report on Friday, May 2nd. Three investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, Savers Value Village has a consensus rating of "Moderate Buy" and an average target price of $12.71.

Insider Buying and Selling

In related news, CEO Mark T. Walsh sold 40,000 shares of the stock in a transaction that occurred on Thursday, May 15th. The shares were sold at an average price of $8.86, for a total transaction of $354,400.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Melinda L. Geisser sold 48,000 shares of the stock in a transaction that occurred on Thursday, July 3rd. The stock was sold at an average price of $10.80, for a total transaction of $518,400.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 131,978 shares of company stock worth $1,354,209. Corporate insiders own 3.09% of the company's stock.

Institutional Trading of Savers Value Village

A number of hedge funds have recently added to or reduced their stakes in the stock. TD Asset Management Inc boosted its position in Savers Value Village by 61.7% in the second quarter. TD Asset Management Inc now owns 204,654 shares of the company's stock valued at $2,087,000 after buying an additional 78,070 shares in the last quarter. CWM LLC boosted its position in Savers Value Village by 1,382.9% in the second quarter. CWM LLC now owns 15,333 shares of the company's stock valued at $156,000 after buying an additional 14,299 shares in the last quarter. AQR Capital Management LLC acquired a new stake in Savers Value Village in the first quarter valued at approximately $120,000. Maverick Capital Ltd. boosted its position in Savers Value Village by 79.5% in the first quarter. Maverick Capital Ltd. now owns 49,092 shares of the company's stock valued at $339,000 after buying an additional 21,743 shares in the last quarter. Finally, Landscape Capital Management L.L.C. acquired a new stake in Savers Value Village in the first quarter valued at approximately $1,495,000. Institutional investors and hedge funds own 98.78% of the company's stock.

Savers Value Village Price Performance

The company's 50 day moving average price is $10.40 and its 200-day moving average price is $9.62. The stock has a market cap of $1.77 billion, a P/E ratio of 54.10 and a beta of 1.00. The company has a quick ratio of 0.57, a current ratio of 0.74 and a debt-to-equity ratio of 1.69.

Savers Value Village Company Profile

Savers Value Village, Inc sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores.