Wall Street Zen Downgrades Zumiez (NASDAQ:ZUMZ) to Hold

Key Points

• Wall Street Zen has downgraded Zumiez from a "buy" rating to a "hold" rating, reflecting concerns about the company's performance.
• Zumiez recently reported quarterly earnings of ($0.06) per share, exceeding analyst expectations, alongside a revenue of $214.28 million, which was also above estimates.
• Institutional investors have shown significant activity in Zumiez, with CWM LLC increasing its stake by 58.5% in the third quarter.

Zumiez (NASDAQ:ZUMZ - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

A number of other equities research analysts have also issued reports on the stock. B. Riley upped their target price on shares of Zumiez from $14.00 to $18.00 and gave the company a "neutral" rating in a research note on Friday, September 5th. Weiss Ratings restated a "sell (d+)" rating on shares of Zumiez in a research report on Friday. Finally, Zacks Research upgraded shares of Zumiez from a "hold" rating to a "strong-buy" rating in a research report on Thursday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Zumiez has a consensus rating of "Hold" and an average price target of $18.00.

Zumiez Price Performance

ZUMZ stock opened at $22.63 on Friday. The firm has a market capitalization of $388.10 million, a PE ratio of -2,260.74 and a beta of 1.04. Zumiez has a 1 year low of $11.31 and a 1 year high of $24.37. The business has a 50 day simple moving average of $19.49 and a 200-day simple moving average of $15.34.

Zumiez (NASDAQ:ZUMZ - Get Free Report) last posted its quarterly earnings results on Thursday, September 4th. The apparel and footwear maker reported ($0.06) earnings per share for the quarter, beating analysts' consensus estimates of ($0.11) by $0.05. The company had revenue of $214.28 million for the quarter, compared to analysts' expectations of $210.53 million. Zumiez had a return on equity of 0.19% and a net margin of 0.06%.Zumiez's quarterly revenue was up 1.9% on a year-over-year basis. During the same period last year, the firm earned ($0.04) earnings per share. Zumiez has set its Q3 2025 guidance at 0.190-0.290 EPS. On average, equities research analysts expect that Zumiez will post -0.12 EPS for the current year.

Insider Activity at Zumiez

In other Zumiez news, insider Chris K. Visser sold 5,618 shares of the business's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $20.09, for a total transaction of $112,865.62. Following the completion of the sale, the insider directly owned 44,303 shares in the company, valued at $890,047.27. The trade was a 11.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Liliana Gil Valletta sold 3,655 shares of the company's stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $21.30, for a total value of $77,851.50. Following the sale, the director directly owned 7,154 shares in the company, valued at $152,380.20. This trade represents a 33.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. 21.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zumiez

Hedge funds have recently made changes to their positions in the stock. CWM LLC raised its stake in Zumiez by 58.5% in the third quarter. CWM LLC now owns 10,701 shares of the apparel and footwear maker's stock valued at $210,000 after buying an additional 3,950 shares during the last quarter. Corient Private Wealth LLC purchased a new position in Zumiez during the second quarter worth approximately $664,000. Monimus Capital Management LP raised its position in Zumiez by 100.4% in the second quarter. Monimus Capital Management LP now owns 104,786 shares of the apparel and footwear maker's stock valued at $1,389,000 after purchasing an additional 52,486 shares during the period. Paradigm Capital Management Inc. NY boosted its holdings in Zumiez by 478.0% during the 2nd quarter. Paradigm Capital Management Inc. NY now owns 768,691 shares of the apparel and footwear maker's stock valued at $10,193,000 after acquiring an additional 635,691 shares during the period. Finally, Bridgeway Capital Management LLC boosted its holdings in Zumiez by 190.7% in the second quarter. Bridgeway Capital Management LLC now owns 240,220 shares of the apparel and footwear maker's stock valued at $3,185,000 after purchasing an additional 157,581 shares during the period. 95.45% of the stock is currently owned by hedge funds and other institutional investors.

Zumiez Company Profile

Zumiez Inc operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company provides hardgoods, including skateboards, snowboards, bindings, components, and other equipment. It operates stores in the United States, Canada, Europe, and Australia under the names of Zumiez, Blue Tomato, and Fast Times.

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