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 after the company announced weaker than expected quarterly earnings. 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 EPS for the quarter, missing the consensus estimate of $0.24 by ($0.04). Steven Madden had a net margin of 3.92% and a return on equity of 18.32%. The firm had revenue of $556.09 million during the quarter, compared to analysts' expectations of $575.83 million. During the same quarter in the prior year, the company earned $0.57 EPS. The business's revenue for the quarter was up 6.8% on a year-over-year basis.

Steven Madden Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Friday, September 12th will be given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Friday, September 12th. Steven Madden's dividend payout ratio is currently 36.21%.

Analysts Set New Price Targets

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

Institutional Trading of Steven Madden

Hedge funds and other institutional investors have recently modified their holdings of the stock. HighTower Advisors LLC lifted its position in Steven Madden by 11.7% in the 4th quarter. HighTower Advisors LLC now owns 6,439 shares of the textile maker's stock valued at $274,000 after acquiring an additional 676 shares in the last quarter. American Century Companies Inc. lifted its holdings in shares of Steven Madden by 53.4% during the 4th quarter. American Century Companies Inc. now owns 74,779 shares of the textile maker's stock worth $3,180,000 after acquiring an additional 26,043 shares during the period. Vanguard Group Inc. raised its stake in shares of Steven Madden by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 8,097,339 shares of the textile maker's stock valued at $344,299,000 after acquiring an additional 54,877 shares during the last quarter. JPMorgan Chase & Co. increased its position in shares of Steven Madden by 26.4% during the fourth quarter. JPMorgan Chase & Co. now owns 584,068 shares of the textile maker's stock worth $24,835,000 after buying an additional 121,972 shares during the period. Finally, Norges Bank acquired a new stake in Steven Madden in the fourth quarter worth $9,399,000. Institutional investors and hedge funds own 99.88% of the company's stock.

Steven Madden Price Performance

The company has a debt-to-equity ratio of 0.33, a current ratio of 2.01 and a quick ratio of 1.64. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of 18.67 and a beta of 1.10. The business's fifty day moving average price is $25.01 and its 200-day moving average price is $27.99.

Steven Madden Company Profile

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.