Wall Street Zen Downgrades Ermenegildo Zegna (NYSE:ZGN) to Hold

Key Points

• Wall Street Zen downgraded Ermenegildo Zegna from a “buy” to a “hold,” adding to a mixed analyst backdrop for the luxury fashion company.
• Other firms have recently shifted views on ZGN in both directions, leaving the stock with a consensus rating of “Moderate Buy” and an average price target of $13.01.
• Shares were trading around $13.86 as the article noted, while insiders including the CFO and CEO sold stock in May, with the transactions described as related to tax withholding from equity awards.

Ermenegildo Zegna (NYSE:ZGN - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Monday.

Several other research firms also recently commented on ZGN. The Goldman Sachs Group downgraded shares of Ermenegildo Zegna from a "buy" rating to a "neutral" rating and raised their price objective for the stock from $13.30 to $14.00 in a report on Wednesday, June 17th. TD Cowen raised shares of Ermenegildo Zegna from a "hold" rating to a "buy" rating and boosted their target price for the company from $13.00 to $15.00 in a report on Wednesday, May 20th. JPMorgan Chase & Co. increased their target price on Ermenegildo Zegna from $12.50 to $14.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 30th. UBS Group reaffirmed a "buy" rating and issued a $14.50 price target on shares of Ermenegildo Zegna in a report on Friday, May 1st. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Ermenegildo Zegna in a research report on Monday, April 20th. Five research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $13.01.

Ermenegildo Zegna Trading Down 0.3%

Shares of NYSE:ZGN opened at $13.86 on Monday. The company has a current ratio of 1.59, a quick ratio of 0.91 and a debt-to-equity ratio of 0.15. Ermenegildo Zegna has a twelve month low of $7.61 and a twelve month high of $15.44. The company has a 50-day moving average price of $13.67 and a two-hundred day moving average price of $11.76.

Insider Activity at Ermenegildo Zegna

In related news, CFO Gian Franco Santhia sold 5,768 shares of the company's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $13.12, for a total transaction of $75,676.16. Following the sale, the chief financial officer owned 44,448 shares of the company's stock, valued at approximately $583,157.76. This represents a 11.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gianluca Ambrogio Tagliabue sold 19,105 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $13.12, for a total transaction of $250,657.60. Following the completion of the sale, the chief executive officer owned 167,720 shares in the company, valued at $2,200,486.40. This represents a 10.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 31,378 shares of company stock valued at $411,679. Corporate insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC lifted its holdings in shares of Ermenegildo Zegna by 48.3% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,788 shares of the company's stock worth $29,000 after acquiring an additional 908 shares during the last quarter. California State Teachers Retirement System bought a new position in shares of Ermenegildo Zegna during the 2nd quarter valued at $33,000. Caitong International Asset Management Co. Ltd raised its position in Ermenegildo Zegna by 11,382.4% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,904 shares of the company's stock worth $40,000 after purchasing an additional 3,870 shares during the period. Lazard Asset Management LLC purchased a new position in Ermenegildo Zegna in the 2nd quarter worth $54,000. Finally, Parallel Advisors LLC bought a new stake in Ermenegildo Zegna in the fourth quarter worth $69,000. Institutional investors own 12.91% of the company's stock.

Ermenegildo Zegna Company Profile

Ermenegildo Zegna is a global luxury fashion house specializing in men's tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.

Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.

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