Shoe Carnival (NASDAQ:SCVL) Upgraded to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Shoe Carnival (NASDAQ: SCVL) from hold to strong-buy, adding to a generally positive analyst backdrop. MarketBeat data now shows a consensus rating of Buy with a $22 price target.
• The stock fell 3.5% and opened at $16.66, leaving it well below the $22 consensus target. Shoe Carnival’s shares remain in the middle of a wide 52-week range, between $14.91 and $26.57.
• Recent earnings topped expectations as first-quarter EPS came in at $0.23 versus $0.20 expected, and revenue reached $270.7 million versus $268.7 million expected. However, sales were still down 2.5% year over year, showing the turnaround is not yet complete.

Shoe Carnival (NASDAQ:SCVL - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Thursday,Zacks.com reports.

Several other research firms have also recently weighed in on SCVL. Weiss Ratings reissued a "hold (c-)" rating on shares of Shoe Carnival in a report on Friday, March 27th. Williams Trading set a $22.00 target price on shares of Shoe Carnival in a research report on Thursday, February 26th. Two analysts have rated the stock with a Strong Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $22.00.

Shoe Carnival Stock Down 3.5%

Shoe Carnival stock opened at $16.66 on Thursday. The stock has a market cap of $457.82 million, a P/E ratio of 12.34 and a beta of 1.44. Shoe Carnival has a twelve month low of $14.91 and a twelve month high of $26.57. The company's 50-day moving average price is $17.30 and its two-hundred day moving average price is $18.12.

Shoe Carnival (NASDAQ:SCVL - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.03. The firm had revenue of $270.73 million for the quarter, compared to analysts' expectations of $268.73 million. Shoe Carnival had a net margin of 3.31% and a return on equity of 7.24%. The business's revenue was down 2.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.34 EPS. Equities analysts anticipate that Shoe Carnival will post 1.5 earnings per share for the current fiscal year.

Insider Activity

In other Shoe Carnival news, CFO W Kerry Jackson bought 31,000 shares of the firm's stock in a transaction on Thursday, April 2nd. The shares were purchased at an average price of $16.13 per share, for a total transaction of $500,030.00. Following the transaction, the chief financial officer directly owned 215,529 shares in the company, valued at approximately $3,476,482.77. This trade represents a 16.80% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 33.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Dimensional Fund Advisors LP grew its position in shares of Shoe Carnival by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,651,332 shares of the company's stock worth $25,744,000 after purchasing an additional 44,759 shares in the last quarter. New South Capital Management Inc. grew its position in shares of Shoe Carnival by 10.3% during the 4th quarter. New South Capital Management Inc. now owns 744,519 shares of the company's stock worth $12,567,000 after purchasing an additional 69,474 shares in the last quarter. Royce & Associates LP grew its position in shares of Shoe Carnival by 38.6% during the 4th quarter. Royce & Associates LP now owns 577,201 shares of the company's stock worth $9,743,000 after purchasing an additional 160,747 shares in the last quarter. Hodges Capital Management Inc. boosted its position in shares of Shoe Carnival by 2.3% during the 4th quarter. Hodges Capital Management Inc. now owns 454,404 shares of the company's stock worth $7,670,000 after acquiring an additional 10,102 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Shoe Carnival by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 448,424 shares of the company's stock worth $7,570,000 after acquiring an additional 4,859 shares in the last quarter. Institutional investors and hedge funds own 66.05% of the company's stock.

Key Shoe Carnival News

Here are the key news stories impacting Shoe Carnival this week:

• Positive Sentiment: Shoe Carnival posted first-quarter EPS of $0.23, beating the $0.20 consensus, and revenue of $270.7 million also topped estimates. Conference Call / Earnings Report
• Positive Sentiment: Management highlighted improving sales trends, including a 2.2% decline in Shoe Carnival banner sales, which was better than prior fiscal 2025 trends and suggests some stabilization in the business. Q1 2026 Results
• Positive Sentiment: Several market commentaries pointed to the stock’s attractive valuation, with one noting the shares trade at a single-digit earnings multiple ex-cash, which may appeal to value investors if the turnaround continues. Valuation Commentary
• Neutral Sentiment: Despite the beat, revenue still declined 2.5% year over year and EPS was below last year’s $0.34, underscoring that the recovery is still early.
• Negative Sentiment: Some analysts warned the stock could remain volatile because the business is still working through broader retail headwinds and the shares may be vulnerable if momentum fades.

About Shoe Carnival

Shoe Carnival, Inc NASDAQ: SCVL is a U.S.-based specialty retailer offering a broad assortment of footwear, apparel and accessories for the entire family. Through its network of brick-and-mortar stores and e-commerce platform, the company provides casual, athletic and dress shoes for men, women and children, as well as complementary apparel, handbags, socks and other accessories designed to deliver value and variety. Its distinctive in-store carnival host service model aims to create an engaging shopping experience and foster customer loyalty.

Founded in 1978 and headquartered in Evansville, Indiana, Shoe Carnival has expanded over four decades to operate more than 350 retail locations across over 30 states.

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