Steven Madden (NASDAQ:SHOO) Shares Gap Down on Disappointing Earnings

Key Points

• Steven Madden's shares gapped down from $26.32 to $23.09 after the company missed earnings expectations, reporting $0.20 earnings per share compared to the anticipated $0.24.
• The company declared a quarterly dividend of $0.21 per share, reflecting an annualized dividend yield of 3.48% and a dividend payout ratio of 36.21%.
• Analysts have varying ratings for Steven Madden, with a consensus rating of "Hold" and an average price target of $30.50, indicating a mixed outlook amidst recent trading pressures.

Steven Madden, Ltd. (NASDAQ:SHOO - Get Free Report) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $26.32, but opened at $23.09. Steven Madden shares last traded at $24.06, with a volume of 745,263 shares changing hands.

The textile maker reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.24 by ($0.04). The business had revenue of $556.09 million for the quarter, compared to the consensus estimate of $575.83 million. Steven Madden had a net margin of 3.92% and a return on equity of 18.32%. Steven Madden's revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.57 earnings per share.

Steven Madden Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Shareholders of record on Friday, September 12th will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 3.6%. The ex-dividend date is Friday, September 12th. Steven Madden's dividend payout ratio (DPR) is 66.14%.

Analysts Set New Price Targets

A number of research analysts have issued reports on SHOO shares. UBS Group raised their price target on shares of Steven Madden from $23.00 to $26.00 and gave the stock a "neutral" rating in a report on Monday, July 28th. Piper Sandler decreased their price target on shares of Steven Madden from $35.00 to $25.00 and set a "neutral" rating for the company in a report on Friday, April 11th. Citigroup raised shares of Steven Madden from a "neutral" rating to a "buy" rating and raised their price target for the stock from $26.00 to $32.00 in a report on Thursday, July 17th. Telsey Advisory Group restated a "market perform" rating and set a $26.00 target price (up from $24.00) on shares of Steven Madden in a research report on Wednesday, July 30th. Finally, Needham & Company LLC restated a "hold" rating on shares of Steven Madden in a research report on Wednesday, July 30th. Eight analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $30.83.

Institutional Trading of Steven Madden

A number of institutional investors and hedge funds have recently modified their holdings of SHOO. CX Institutional purchased a new stake in Steven Madden during the 1st quarter valued at about $32,000. Caitong International Asset Management Co. Ltd boosted its holdings in Steven Madden by 328.8% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 2,161 shares of the textile maker's stock valued at $58,000 after purchasing an additional 1,657 shares during the last quarter. Quarry LP boosted its holdings in Steven Madden by 403.6% in the 4th quarter. Quarry LP now owns 1,385 shares of the textile maker's stock valued at $59,000 after purchasing an additional 1,110 shares during the last quarter. Signaturefd LLC boosted its holdings in Steven Madden by 475.5% in the 2nd quarter. Signaturefd LLC now owns 2,492 shares of the textile maker's stock valued at $60,000 after purchasing an additional 2,059 shares during the last quarter. Finally, CWM LLC boosted its holdings in Steven Madden by 231.0% in the 1st quarter. CWM LLC now owns 2,277 shares of the textile maker's stock valued at $61,000 after purchasing an additional 1,589 shares during the last quarter. Hedge funds and other institutional investors own 99.88% of the company's stock.

Steven Madden Stock Performance

The company has a current ratio of 2.01, a quick ratio of 1.13 and a debt-to-equity ratio of 0.33. The firm's fifty day moving average price is $24.99 and its 200 day moving average price is $27.68. The stock has a market capitalization of $1.71 billion, a price-to-earnings ratio of 18.52 and a beta of 1.16.

About Steven Madden

Steven Madden, Ltd. designs, sources, and markets fashion-forward branded and private label footwear, accessories, and apparel in the United States and internationally. It operates through Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to- Consumer, and Licensing segments. The Wholesale Footwear segment designs, sources, and markets various products, including dress shoes, boots, booties, fashion sneakers, sandals, and casual shoes under the Steve Madden, Dolce Vita, Betsey Johnson, Blondo, GREATS, and Anne Klein brands.