Short Interest in Levi Strauss & Co. (NYSE:LEVI) Drops By 21.8%

Key Points

• Short interest in Levi Strauss fell 21.8% to 7,991,792 shares as of March 31, equal to about 2.1% of shares short and a days-to-cover ratio of 3.6.
• Levi beat expectations for the quarter with $0.42 EPS vs $0.37 expected and $1.74 billion in revenue (up 14.1% year-over-year), and reported a return on equity of 25.35%.
• The company announced a quarterly dividend of $0.14 ($0.56 annualized, ~2.5% yield), and analysts hold a consensus "Moderate Buy" rating with an average price target of $26.77 (11 Buys, 4 Holds).

Levi Strauss & Co. (NYSE:LEVI - Get Free Report) saw a large drop in short interest in the month of March. As of March 31st, there was short interest totaling 7,991,792 shares, a drop of 21.8% from the March 15th total of 10,216,069 shares. Currently, 2.1% of the company's shares are short sold. Based on an average daily trading volume, of 2,238,949 shares, the days-to-cover ratio is currently 3.6 days.

Levi Strauss & Co. Trading Up 0.4%

Shares of LEVI opened at $22.41 on Wednesday. The business's 50-day moving average price is $20.31 and its 200-day moving average price is $21.06. Levi Strauss & Co. has a twelve month low of $13.83 and a twelve month high of $24.82. The stock has a market cap of $8.75 billion, a PE ratio of 14.27, a P/E/G ratio of 1.69 and a beta of 1.34. The company has a quick ratio of 0.97, a current ratio of 1.58 and a debt-to-equity ratio of 0.48.

Levi Strauss & Co. (NYSE:LEVI - Get Free Report) last announced its quarterly earnings results on Tuesday, April 7th. The blue-jean maker reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.05. Levi Strauss & Co. had a return on equity of 25.35% and a net margin of 9.52%.The firm had revenue of $1.74 billion for the quarter, compared to analysts' expectations of $1.65 billion. During the same period in the prior year, the business posted $0.38 earnings per share. The company's revenue was up 14.1% on a year-over-year basis. On average, equities analysts forecast that Levi Strauss & Co. will post 1.27 EPS for the current fiscal year.

Levi Strauss & Co. Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 6th. Shareholders of record on Wednesday, April 22nd will be paid a $0.14 dividend. The ex-dividend date of this dividend is Wednesday, April 22nd. This represents a $0.56 annualized dividend and a yield of 2.5%. Levi Strauss & Co.'s dividend payout ratio is currently 35.67%.

Insider Activity at Levi Strauss & Co.

In other news, EVP Jason Gowans sold 40,000 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $21.83, for a total transaction of $873,200.00. Following the completion of the sale, the executive vice president owned 92,199 shares of the company's stock, valued at $2,012,704.17. This trade represents a 30.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, SVP David Jedrzejek sold 2,248 shares of Levi Strauss & Co. stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $19.60, for a total transaction of $44,060.80. Following the completion of the sale, the senior vice president directly owned 106,818 shares of the company's stock, valued at approximately $2,093,632.80. The trade was a 2.06% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 49,341 shares of company stock valued at $1,068,909. Insiders own 1.08% of the company's stock.

Institutional Trading of Levi Strauss & Co.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. US Bancorp DE lifted its position in Levi Strauss & Co. by 260.5% in the third quarter. US Bancorp DE now owns 1,121 shares of the blue-jean maker's stock valued at $26,000 after purchasing an additional 810 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new stake in Levi Strauss & Co. in the fourth quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Levi Strauss & Co. by 140.7% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,425 shares of the blue-jean maker's stock valued at $26,000 after acquiring an additional 833 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Levi Strauss & Co. during the fourth quarter valued at approximately $39,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Levi Strauss & Co. by 133.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,286 shares of the blue-jean maker's stock valued at $51,000 after acquiring an additional 1,879 shares in the last quarter. Institutional investors own 69.14% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on LEVI. Wall Street Zen upgraded Levi Strauss & Co. from a "hold" rating to a "strong-buy" rating in a research note on Saturday. Weiss Ratings cut Levi Strauss & Co. from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, April 8th. UBS Group lifted their target price on Levi Strauss & Co. from $33.00 to $34.00 and gave the stock a "buy" rating in a research note on Wednesday, April 8th. Telsey Advisory Group reiterated an "outperform" rating and set a $27.00 target price on shares of Levi Strauss & Co. in a research note on Wednesday, April 1st. Finally, BTIG Research reiterated a "buy" rating and set a $27.00 target price on shares of Levi Strauss & Co. in a research note on Wednesday, April 8th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $26.77.

Levi Strauss & Co. Company Profile

Levi Strauss & Co is a global apparel company best known for its denim jeans and casual wear. Founded in 1853 in San Francisco by Bavarian immigrant Levi Strauss, the company pioneered the modern blue jean with the introduction of rivet-reinforced work pants. Over its more than 160-year history, Levi Strauss has evolved into a lifestyle brand, offering a broad portfolio that includes denim for men, women and children, as well as tops, outerwear, footwear and accessories.

The company's flagship label, Levi's®, is recognized worldwide for its iconic styles such as the 501® Original Fit Jeans, while additional brands, including Dockers®, Target core metric, and Denizen® by Levi's, cater to diverse price points and consumer segments.

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