Superior Group of Companies (NASDAQ:SGC) Shares Pass Below Two Hundred Day Moving Average - What's Next?

Key Points

• Superior Group (SGC) shares dipped below their 200-day moving average of $10.04, trading as low as $9.98 on Monday, a potential technical warning for momentum investors.
• Wall Street sentiment is mildly positive with a consensus rating of Moderate Buy (two Buys, one Hold) and a collective target price of $16.00, implying significant upside from current levels.
• The stock offers a 5.6% dividend yield, but the payout ratio is elevated at 121.74%, signaling the dividend may be unsustainably high relative to earnings.

Shares of Superior Group of Companies, Inc. (NASDAQ:SGC - Get Free Report) crossed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $10.04 and traded as low as $9.98. Superior Group of Companies shares last traded at $10.05, with a volume of 27,122 shares traded.

Wall Street Analyst Weigh In

SGC has been the topic of a number of recent research reports. Weiss Ratings reissued a "hold (c)" rating on shares of Superior Group of Companies in a research report on Thursday, January 22nd. Wall Street Zen raised shares of Superior Group of Companies from a "hold" rating to a "buy" rating in a research note on Saturday, March 7th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.00.

Superior Group of Companies Stock Up 0.7%

The company has a market cap of $157.79 million, a P/E ratio of 21.85, a P/E/G ratio of 1.72 and a beta of 1.47. 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 business's 50 day moving average is $10.12 and its 200 day moving average is $10.04.

Superior Group of Companies (NASDAQ:SGC - Get Free Report) last posted its earnings results on Tuesday, March 3rd. The textile maker reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.20 by $0.03. Superior Group of Companies had a return on equity of 3.62% and a net margin of 1.24%.The company had revenue of $146.58 million during the quarter, compared to analyst estimates of $145.23 million. As a group, equities analysts anticipate that Superior Group of Companies, Inc. will post 0.77 earnings per share for the current fiscal year.

Superior Group of Companies Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Monday, February 16th were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $0.56 dividend on an annualized basis and a yield of 5.6%. Superior Group of Companies's dividend payout ratio (DPR) is presently 121.74%.

Hedge Funds Weigh In On Superior Group of Companies

Several institutional investors and hedge funds have recently added to or reduced their stakes in SGC. Russell Investments Group Ltd. lifted its position in shares of Superior Group of Companies by 55.4% during the third quarter. Russell Investments Group Ltd. now owns 4,263 shares of the textile maker's stock valued at $46,000 after buying an additional 1,520 shares during the last quarter. Deutsche Bank AG purchased a new position in shares of Superior Group of Companies in the 4th quarter worth approximately $65,000. Certior Financial Group LLC purchased a new position in shares of Superior Group of Companies in the 4th quarter worth approximately $105,000. HB Wealth Management LLC bought a new position in shares of Superior Group of Companies during the 4th quarter worth approximately $117,000. Finally, Allspring Global Investments Holdings LLC raised its stake in shares of Superior Group of Companies by 9.1% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 12,329 shares of the textile maker's stock worth $119,000 after acquiring an additional 1,028 shares in the last quarter. 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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