Wall Street Zen Upgrades Superior Group of Companies (NASDAQ:SGC) to Buy

Key Points

• Superior Group of Companies has been upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, indicating positive market sentiment.
• The company's recent quarterly earnings exceeded analysts' expectations, reporting $0.10 EPS against a forecast of $0.05, alongside revenue of $144.05 million.
• Analysts predict that Superior Group of Companies will post 0.77 earnings per share for the current fiscal year, reflecting growth potential.

Wall Street Zen upgraded shares of Superior Group of Companies (NASDAQ:SGC - Free Report) from a hold rating to a buy rating in a research note released on Saturday.

Several other brokerages have also commented on SGC. Barrington Research dropped their price target on shares of Superior Group of Companies from $18.00 to $15.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 13th. Noble Financial initiated coverage on Superior Group of Companies in a research report on Thursday, May 29th. They issued an "outperform" rating and a $16.00 price target for the company.

Superior Group of Companies Price Performance

NASDAQ SGC traded up $0.22 on Friday, hitting $12.89. The company had a trading volume of 6,947 shares, compared to its average volume of 49,962. The company's fifty day moving average price is $10.58 and its 200-day moving average price is $11.39. The company has a market capitalization of $205.89 million, a PE ratio of 25.24, a PEG ratio of 2.64 and a beta of 1.45. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.71 and a quick ratio of 1.70. Superior Group of Companies has a 12-month low of $9.11 and a 12-month high of $18.48.

Superior Group of Companies (NASDAQ:SGC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The textile maker reported $0.10 EPS for the quarter, topping analysts' consensus estimates of $0.05 by $0.05. Superior Group of Companies had a return on equity of 4.22% and a net margin of 1.44%. The business had revenue of $144.05 million during the quarter, compared to the consensus estimate of $133.32 million. As a group, analysts predict that Superior Group of Companies will post 0.77 earnings per share for the current year.

Superior Group of Companies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Monday, August 18th will be given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend is Monday, August 18th. Superior Group of Companies's dividend payout ratio is currently 109.80%.

Insider Activity

In related news, Director Andrew D. Demott, Jr. sold 12,000 shares of the company's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $11.46, for a total transaction of $137,520.00. Following the sale, the director directly owned 202,126 shares of the company's stock, valued at approximately $2,316,363.96. This represents a 5.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 26.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SGC. Hsbc Holdings PLC grew its stake in shares of Superior Group of Companies by 34.6% in the second quarter. Hsbc Holdings PLC now owns 29,917 shares of the textile maker's stock worth $309,000 after purchasing an additional 7,684 shares in the last quarter. American Century Companies Inc. grew its stake in shares of Superior Group of Companies by 2.5% in the second quarter. American Century Companies Inc. now owns 383,425 shares of the textile maker's stock worth $3,949,000 after purchasing an additional 9,347 shares in the last quarter. Kapitalo Investimentos Ltda bought a new position in shares of Superior Group of Companies in the second quarter worth $122,000. CWC Advisors LLC. grew its stake in shares of Superior Group of Companies by 2.9% in the second quarter. CWC Advisors LLC. now owns 49,455 shares of the textile maker's stock worth $509,000 after purchasing an additional 1,395 shares in the last quarter. Finally, Strs Ohio bought a new position in shares of Superior Group of Companies in the first quarter worth $319,000. 33.75% of the stock is currently owned by institutional investors.

About Superior Group of Companies

Superior Group of Companies, Inc manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Branded Products, Healthcare Apparel, and Contact Centers. The Branded Products segment produces and sells customized merchandising solutions, promotional products, and branded uniform to chain retailer, food service, entertainment, technology, transportation, and other industries under BAMKO and HPI brands.