V.F. (NYSE:VFC) Shares Gap Up After Earnings Beat

Key Points

• V.F. Corporation's shares opened at $15.00 after reporting earnings of ($0.24) per share, outperforming estimates by $0.10.
• The company announced a quarterly dividend of $0.09 per share, representing an annualized yield of 2.62%.
• Several analysts have reiterated or downgraded their ratings on V.F., with an average target price of $16.21 and a general consensus rating of "Hold."

V.F. Corporation (NYSE:VFC - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $12.40, but opened at $15.00. V.F. shares last traded at $13.78, with a volume of 8,559,943 shares.

The textile maker reported ($0.24) EPS for the quarter, beating analysts' consensus estimates of ($0.35) by $0.11. The business had revenue of $1.76 billion during the quarter, compared to analyst estimates of $1.70 billion. V.F. had a positive return on equity of 22.77% and a negative net margin of 0.50%. The firm's revenue was down 7.3% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.33) EPS.

V.F. Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on VFC shares. Telsey Advisory Group restated a "market perform" rating and set a $14.00 target price on shares of V.F. in a research report on Wednesday. JPMorgan Chase & Co. dropped their target price on shares of V.F. from $25.00 to $18.00 and set a "neutral" rating for the company in a report on Monday, May 19th. Wall Street Zen lowered shares of V.F. from a "buy" rating to a "hold" rating in a report on Saturday, May 24th. Wells Fargo & Company reduced their price target on shares of V.F. from $13.00 to $12.00 and set an "equal weight" rating for the company in a research report on Thursday, May 22nd. Finally, KGI Securities began coverage on shares of V.F. in a research report on Thursday. They issued an "outperform" rating and a $14.80 target price for the company. Two research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, V.F. currently has a consensus rating of "Hold" and a consensus target price of $16.04.

Insiders Place Their Bets

In related news, Director Richard Carucci bought 50,000 shares of the business's stock in a transaction dated Friday, May 23rd. The stock was acquired at an average price of $12.05 per share, with a total value of $602,500.00. Following the completion of the purchase, the director directly owned 280,282 shares of the company's stock, valued at approximately $3,377,398.10. This trade represents a 21.71% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Abhishek Dalmia purchased 50,000 shares of the stock in a transaction that occurred on Friday, May 23rd. The shares were acquired at an average price of $11.78 per share, for a total transaction of $589,000.00. Following the completion of the transaction, the executive vice president directly owned 380,614 shares of the company's stock, valued at $4,483,632.92. The trade was a 15.12% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have acquired 185,840 shares of company stock worth $2,198,403. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On V.F.

A number of large investors have recently modified their holdings of VFC. GAMMA Investing LLC grew its position in shares of V.F. by 1,355.2% in the 1st quarter. GAMMA Investing LLC now owns 404,405 shares of the textile maker's stock valued at $6,276,000 after buying an additional 376,615 shares during the last quarter. Fiduciary Alliance LLC increased its holdings in V.F. by 61.1% during the 2nd quarter. Fiduciary Alliance LLC now owns 481,091 shares of the textile maker's stock valued at $5,653,000 after acquiring an additional 182,495 shares in the last quarter. Rhumbline Advisers increased its holdings in V.F. by 11.0% during the 1st quarter. Rhumbline Advisers now owns 928,753 shares of the textile maker's stock valued at $14,414,000 after acquiring an additional 92,174 shares in the last quarter. Entropy Technologies LP purchased a new stake in shares of V.F. during the first quarter worth about $749,000. Finally, Amalgamated Bank grew its holdings in shares of V.F. by 46.2% during the first quarter. Amalgamated Bank now owns 152,410 shares of the textile maker's stock worth $2,365,000 after buying an additional 48,151 shares in the last quarter. 86.84% of the stock is owned by hedge funds and other institutional investors.

V.F. Price Performance

The company's 50-day moving average is $12.35 and its 200-day moving average is $16.11. The company has a debt-to-equity ratio of 2.76, a current ratio of 1.27 and a quick ratio of 0.80. The firm has a market capitalization of $4.55 billion, a price-to-earnings ratio of -89.65, a PEG ratio of 1.45 and a beta of 1.66.

V.F. Company Profile

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.