Superior Group of Companies (NASDAQ:SGC) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen downgraded Superior Group of Companies from "strong‑buy" to "buy" while Weiss Ratings reaffirmed a "hold (c)"; the stock's consensus is a Moderate Buy with a $16.00 price target.
• Superior posted an earnings beat—EPS $0.23 vs. $0.20 expected and revenue of $146.6M—yet margins are thin (net margin 1.24%, ROE 3.62%), and analysts forecast ~0.58 EPS for the year.
• The shares are trading around $11.76 with a market cap of ~$184.6M and a P/E of 25.57, inside a 12‑month range of $8.30–$13.78 and below the $16 consensus target.

Superior Group of Companies (NASDAQ:SGC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Sunday.

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Superior Group of Companies in a research report on Tuesday. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Superior Group of Companies currently has a consensus rating of "Moderate Buy" and a consensus price target of $16.00.

Superior Group of Companies Stock Performance

NASDAQ SGC opened at $11.76 on Friday. The stock has a fifty day simple moving average of $10.42 and a 200 day simple moving average of $10.03. The company has a quick ratio of 1.76, a current ratio of 2.66 and a debt-to-equity ratio of 0.45. The company has a market capitalization of $184.63 million, a price-to-earnings ratio of 25.57, a PEG ratio of 1.95 and a beta of 1.40. Superior Group of Companies has a twelve month low of $8.30 and a twelve month high of $13.78.

Superior Group of Companies (NASDAQ:SGC - Get Free Report) last posted its quarterly earnings results on Tuesday, March 3rd. The textile maker reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.03. The company had revenue of $146.58 million during the quarter, compared to analyst estimates of $145.23 million. Superior Group of Companies had a net margin of 1.24% and a return on equity of 3.62%. Sell-side analysts expect that Superior Group of Companies will post 0.58 EPS for the current year.

Institutional Investors Weigh In On Superior Group of Companies

Large investors have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. lifted its holdings in Superior Group of Companies by 23.2% during the fourth quarter. Russell Investments Group Ltd. now owns 5,252 shares of the textile maker's stock valued at $51,000 after purchasing an additional 989 shares during the last quarter. Ameriprise Financial Inc. increased its stake in shares of Superior Group of Companies by 6.1% in the second quarter. Ameriprise Financial Inc. now owns 17,708 shares of the textile maker's stock worth $182,000 after purchasing an additional 1,021 shares in the last quarter. Allspring Global Investments Holdings LLC increased its stake in shares of Superior Group of Companies by 9.1% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 12,329 shares of the textile maker's stock worth $119,000 after purchasing an additional 1,028 shares in the last quarter. Bridgeway Capital Management LLC raised its position in shares of Superior Group of Companies by 0.8% in the second quarter. Bridgeway Capital Management LLC now owns 176,303 shares of the textile maker's stock valued at $1,816,000 after purchasing an additional 1,331 shares during the period. Finally, Arete Wealth Advisors LLC raised its position in shares of Superior Group of Companies by 7.6% in the third quarter. Arete Wealth Advisors LLC now owns 18,984 shares of the textile maker's stock valued at $204,000 after purchasing an additional 1,348 shares during the period. Hedge funds and other institutional investors own 33.75% of the company's stock.

Superior Group of Companies Company Profile

Superior Group of Companies is a global developer and manufacturer of specialty packaging materials, including films, laminations and pressure-sensitive adhesives. Founded in 1969 and headquartered in Santa Fe Springs, California, the company combines advanced printing technologies with materials science expertise to deliver customized packaging solutions for industries such as food and beverage, healthcare, personal care and household products.

Through a network of manufacturing and distribution facilities across North America, Europe and Asia, Superior Group serves both multinational brand owners and regional producers.

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