Wall Street Zen Downgrades Birkenstock (NYSE:BIRK) to Sell

Key Points

• Wall Street Zen downgraded Birkenstock to “sell” from “hold,” despite the broader analyst consensus remaining “Moderate Buy” with an average price target of $53.91.
• Birkenstock shares were trading at $39.34, down 4.1%, after the company’s latest quarterly results missed expectations: EPS was $0.58 versus a $0.70 consensus estimate, while revenue reached $714.4 million.
• Insider Mehdi Nico Bouyakhf sold 60,000 shares for approximately $2.5 million, reducing his direct ownership by nearly 50%; institutional investors and hedge funds collectively own 19.93% of the stock.

Birkenstock (NYSE:BIRK - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

A number of other brokerages have also recently issued reports on BIRK. Morgan Stanley set a $41.00 price objective on shares of Birkenstock in a research note on Thursday, May 14th. Raymond James Financial assumed coverage on Birkenstock in a research note on Wednesday, July 1st. They issued an "outperform" rating and a $52.00 price target on the stock. Weiss Ratings upgraded Birkenstock from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 2nd. UBS Group reduced their price objective on Birkenstock from $77.00 to $76.00 and set a "buy" rating on the stock in a research note on Tuesday, August 4th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $55.00 target price (up from $50.00) on shares of Birkenstock in a research report on Friday. Thirteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $53.91.

Birkenstock Trading Down 4.1%

Shares of Birkenstock stock opened at $39.34 on Friday. The company has a quick ratio of 1.19, a current ratio of 2.95 and a debt-to-equity ratio of 0.45. Birkenstock has a 12-month low of $31.12 and a 12-month high of $53.53. The company has a market capitalization of $7.23 billion, a price-to-earnings ratio of 18.43, a PEG ratio of 1.70 and a beta of 1.30. The firm's 50-day moving average price is $43.04 and its two-hundred day moving average price is $40.09.

Birkenstock (NYSE:BIRK - Get Free Report) last issued its earnings results on Wednesday, May 13th. The company reported $0.58 EPS for the quarter, missing the consensus estimate of $0.70 by ($0.12). The firm had revenue of $714.40 million during the quarter, compared to analyst estimates of $716.62 million. Birkenstock had a net margin of 14.82% and a return on equity of 13.41%. Birkenstock's quarterly revenue was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.63 earnings per share. On average, analysts forecast that Birkenstock will post 2.29 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Mehdi Nico Bouyakhf sold 60,000 shares of the company's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $42.07, for a total transaction of $2,524,200.00. Following the completion of the transaction, the insider directly owned 61,153 shares in the company, valued at approximately $2,572,706.71. This represents a 49.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Hedge Funds Weigh In On Birkenstock

A number of institutional investors and hedge funds have recently bought and sold shares of BIRK. T. Rowe Price Investment Management Inc. grew its holdings in shares of Birkenstock by 11.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 11,886,454 shares of the company's stock worth $486,156,000 after purchasing an additional 1,264,841 shares during the last quarter. Bamco Inc. NY raised its holdings in Birkenstock by 25.4% in the 4th quarter. Bamco Inc. NY now owns 7,966,037 shares of the company's stock valued at $325,811,000 after buying an additional 1,612,236 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Birkenstock by 30.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,049,787 shares of the company's stock valued at $145,078,000 after buying an additional 956,167 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in Birkenstock by 0.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,950,380 shares of the company's stock worth $120,672,000 after buying an additional 25,585 shares during the period. Finally, Morgan Stanley grew its holdings in Birkenstock by 25.1% during the 4th quarter. Morgan Stanley now owns 2,797,719 shares of the company's stock worth $114,427,000 after acquiring an additional 562,188 shares during the last quarter. Institutional investors and hedge funds own 19.93% of the company's stock.

Birkenstock News Summary

Here are the key news stories impacting Birkenstock this week:

• Positive Sentiment: Fiscal Q3 revenue rose 13.3% year over year to approximately $821 million, exceeding consensus expectations. Growth was 15% on a constant-currency basis and was led by direct-to-consumer sales, new styles and continued pricing power. Birkenstock fiscal third-quarter results
• Positive Sentiment: Management raised its full-year revenue-growth outlook, citing resilient full-price demand from affluent consumers and strong sandal sales. Revenue guidance of roughly $2.8 billion is above the approximately $2.7 billion analyst consensus. Birkenstock raises annual revenue forecast
• Positive Sentiment: Guggenheim and BTIG Research reaffirmed “buy” ratings and maintained $60 price targets, implying substantial upside from the recent trading level. Analyst rating updates
• Neutral Sentiment: Birkenstock is expanding beyond its traditional clog and sandal offerings, with CEO Oliver Reichert highlighting global demand for ballet-inspired products, including ballerinas and Mary Jane styles. This could broaden the customer base, though the financial contribution remains unproven. Birkenstock expands into ballet fashion
• Negative Sentiment: Quarterly EPS of about $0.85–$0.86 narrowly missed consensus estimates of $0.86–$0.87. Fiscal-year EPS guidance of $2.22–$2.40 also brackets, but does not clearly exceed, the $2.27 consensus estimate. Birkenstock earnings miss
• Negative Sentiment: After a sharp post-earnings advance, some investors appear to be taking profits. Analysts also caution that, despite accelerating DTC growth, the shares may not offer the most attractive risk-reward at current valuation levels. Birkenstock valuation analysis

About Birkenstock

Birkenstock Group AG, listed on the New York Stock Exchange under the symbol BIRK, is a global footwear manufacturer renowned for its anatomically contoured footbeds and iconic sandal designs. The company’s core product lines include classic models such as the Arizona, Boston and Madrid, alongside a range of clogs, shoes and orthotic insoles. In addition to footwear, Birkenstock offers complementary accessories, including socks and leather care products, reinforcing its commitment to foot health and comfort.

Birkenstock reaches consumers through a diversified distribution network that combines direct-to-consumer channels—such as branded retail stores and e-commerce platforms—with wholesale partnerships spanning specialty footwear retailers, department stores and select online marketplaces.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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