Wall Street Zen Upgrades Ermenegildo Zegna (NYSE:ZGN) to "Buy"

Key Points

• Wall Street Zen upgraded Ermenegildo Zegna from "hold" to "buy," joining UBS which also raised the stock to a buy; analysts' consensus is a Moderate Buy with an average price target of $11.73 (four Buys, three Holds).
• The company missed quarterly expectations, reporting EPS of $0.15 versus $0.26 expected and revenue of $577.8M versus $1.17B expected, yet shares opened at $12.12 and were trading up about 5% near their 12-month high.
• Hedge funds have been increasing exposure—Millennium Management boosted its stake by 182.8% to 1,149,055 shares (~$8.5M) and Goldman Sachs also raised its holding—while institutional investors own about 12.9% of the stock.

Ermenegildo Zegna (NYSE:ZGN - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

Several other analysts also recently commented on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Ermenegildo Zegna in a research report on Wednesday, January 21st. Bank of America reissued a "neutral" rating and issued a $11.20 target price (down from $11.50) on shares of Ermenegildo Zegna in a research report on Friday, January 16th. UBS Group raised shares of Ermenegildo Zegna from a "neutral" rating to a "buy" rating and set a $11.50 price objective for the company in a report on Thursday, February 5th. Finally, Morgan Stanley began coverage on shares of Ermenegildo Zegna in a report on Thursday, February 12th. They set an "equal weight" rating and a $11.00 price objective for the company. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Ermenegildo Zegna has an average rating of "Moderate Buy" and a consensus price target of $11.73.

Ermenegildo Zegna Trading Up 5.0%

Ermenegildo Zegna stock opened at $12.12 on Friday. The firm's fifty day moving average price is $10.75 and its 200 day moving average price is $10.35. Ermenegildo Zegna has a 12-month low of $6.82 and a 12-month high of $12.19. The company has a quick ratio of 0.91, a current ratio of 1.59 and a debt-to-equity ratio of 0.15.

Ermenegildo Zegna (NYSE:ZGN - Get Free Report) last posted its earnings results on Friday, March 20th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.11). The business had revenue of $577.83 million for the quarter, compared to analysts' expectations of $1.17 billion. Analysts anticipate that Ermenegildo Zegna will post 0.35 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ZGN. Millennium Management LLC boosted its stake in shares of Ermenegildo Zegna by 182.8% in the 1st quarter. Millennium Management LLC now owns 1,149,055 shares of the company's stock valued at $8,503,000 after purchasing an additional 742,680 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Ermenegildo Zegna by 22.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 134,503 shares of the company's stock worth $995,000 after acquiring an additional 24,862 shares during the last quarter. Jane Street Group LLC acquired a new stake in Ermenegildo Zegna during the 1st quarter worth approximately $1,161,000. Geode Capital Management LLC acquired a new stake in Ermenegildo Zegna during the 2nd quarter worth approximately $6,245,000. Finally, JPMorgan Chase & Co. raised its holdings in Ermenegildo Zegna by 59,691.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 29,298 shares of the company's stock worth $250,000 after buying an additional 29,249 shares during the period. 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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