V.F. (NYSE:VFC) Shares Down 9.1% - Time to Sell?

Key Points

• V.F. Corporation's shares dropped 9.1% to $11.56, significantly below its previous closing price of $12.72, with trading volume down 48% compared to its average.
• Analysts are divided on V.F.'s outlook, with recent downgrades from various brokerages leading to an average rating of "Hold" and a target price of $16.04.
• The company reported a quarterly loss of ($0.24) EPS but exceeded revenue expectations with $1.76 billion, though there was a year-over-year revenue decline of 7.3%.

V.F. Corporation (NYSE:VFC - Get Free Report) shares fell 9.1% on Thursday . The stock traded as low as $11.58 and last traded at $11.56. 4,510,272 shares traded hands during mid-day trading, a decline of 48% from the average session volume of 8,675,397 shares. The stock had previously closed at $12.72.

Analysts Set New Price Targets

Several brokerages have recently weighed in on VFC. BNP Paribas Exane downgraded shares of V.F. from a "neutral" rating to an "underperform" rating in a research note on Thursday. UBS Group raised their price target on shares of V.F. from $12.00 to $16.00 and gave the stock a "neutral" rating in a research note on Monday, May 19th. Wall Street Zen downgraded shares of V.F. from a "buy" rating to a "hold" rating in a research note on Saturday, May 24th. Robert W. Baird reduced their price target on shares of V.F. from $17.00 to $14.00 and set a "neutral" rating on the stock in a research note on Thursday, May 22nd. Finally, KGI Securities initiated coverage on shares of V.F. in a report on Thursday. They set an "outperform" rating and a $14.80 target price on the stock. Two analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $16.04.

V.F. Trading Down 7.8%

The firm has a market cap of $4.57 billion, a PE ratio of -23.41, a PEG ratio of 1.42 and a beta of 1.66. The business has a 50-day moving average price of $12.36 and a two-hundred day moving average price of $16.19. The company has a debt-to-equity ratio of 2.30, a current ratio of 1.40 and a quick ratio of 0.80.

V.F. (NYSE:VFC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The textile maker reported ($0.24) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.34) by $0.10. V.F. had a positive return on equity of 20.14% and a negative net margin of 1.97%. The firm had revenue of $1.76 billion for the quarter, compared to analyst estimates of $1.70 billion. During the same period last year, the company earned ($0.33) EPS. The firm's quarterly revenue was down 7.3% on a year-over-year basis. Analysts forecast that V.F. Corporation will post 0.73 EPS for the current year.

V.F. Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Wednesday, September 10th will be paid a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 3.1%. V.F.'s dividend payout ratio is currently -72.00%.

Insider Activity

In related news, EVP Abhishek Dalmia purchased 50,000 shares of V.F. stock in a transaction that occurred on Friday, May 23rd. The shares were purchased at an average cost of $11.78 per share, with a total value of $589,000.00. Following the transaction, the executive vice president owned 380,614 shares of the company's stock, valued at approximately $4,483,632.92. The trade was a 15.12% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Bracken Darrell purchased 85,840 shares of V.F. stock in a transaction that occurred on Friday, May 23rd. The shares were bought at an average cost of $11.73 per share, for a total transaction of $1,006,903.20. Following the completion of the transaction, the insider directly owned 295,406 shares in the company, valued at $3,465,112.38. This represents a 40.96% increase in their position. The disclosure for this purchase can be found here. Insiders have bought 185,840 shares of company stock valued at $2,198,403 in the last three months. Corporate insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On V.F.

Several hedge funds and other institutional investors have recently bought and sold shares of VFC. Farther Finance Advisors LLC increased its holdings in shares of V.F. by 94.8% in the 2nd quarter. Farther Finance Advisors LLC now owns 4,975 shares of the textile maker's stock valued at $58,000 after acquiring an additional 2,421 shares during the last quarter. SG Americas Securities LLC bought a new stake in shares of V.F. in the 1st quarter valued at approximately $350,000. Entropy Technologies LP bought a new stake in shares of V.F. in the 1st quarter valued at approximately $749,000. Amalgamated Bank increased its holdings in shares of V.F. by 46.2% in the 1st quarter. Amalgamated Bank now owns 152,410 shares of the textile maker's stock valued at $2,365,000 after acquiring an additional 48,151 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its holdings in shares of V.F. by 11.1% in the 1st quarter. Russell Investments Group Ltd. now owns 277,442 shares of the textile maker's stock valued at $4,306,000 after acquiring an additional 27,727 shares during the last quarter. 86.84% of the stock is currently owned by hedge funds and other institutional investors.

About V.F.

VF Corp. engages in the business of producing and marketing apparel, footwear, and accessories. It operates through the following segments: Outdoor, Active, Work, and Other. The Outdoor segment includes authentic outdoor-based lifestyle brands such as performance-based and outdoor apparel, footwear, and equipment.

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