Wells Fargo & Company Issues Positive Forecast for Deckers Outdoor (NYSE:DECK) Stock Price

Key Points

• Wells Fargo & Company has increased its price target for Deckers Outdoor (NYSE:DECK) from $90.00 to $100.00, maintaining an "equal weight" rating on the stock.
• Following the increase, Deckers Outdoor's stock price surged 13.4% to around $118.97 during mid-day trading on Friday.
• The company has initiated a $2.25 billion stock buyback program, indicating management's belief that the stock is undervalued.
• Deckers Outdoor reported an earnings per share of $0.93 for the last quarter, exceeding analyst estimates by $0.25, with revenue rising 16.9% year-over-year.

Deckers Outdoor (NYSE:DECK - Get Free Report) had its target price boosted by investment analysts at Wells Fargo & Company from $90.00 to $100.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the textile maker's stock. Wells Fargo & Company's price target would indicate a potential downside of 14.26% from the company's previous close.

Several other analysts also recently commented on DECK. Robert W. Baird increased their target price on shares of Deckers Outdoor from $140.00 to $150.00 and gave the company an "outperform" rating in a report on Friday. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $120.00 price objective on shares of Deckers Outdoor in a research report on Friday. KGI Securities upgraded shares of Deckers Outdoor to a "hold" rating in a research note on Monday, May 26th. Piper Sandler cut their target price on Deckers Outdoor from $210.00 to $100.00 and set a "neutral" rating on the stock in a research note on Friday, April 11th. Finally, The Goldman Sachs Group decreased their price target on Deckers Outdoor from $90.00 to $87.00 and set a "sell" rating for the company in a research report on Tuesday. One investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Deckers Outdoor presently has a consensus rating of "Hold" and an average price target of $131.77.

Deckers Outdoor Stock Performance

DECK traded up $11.69 on Friday, hitting $116.63. 15,340,205 shares of the company were exchanged, compared to its average volume of 3,644,249. The company has a market cap of $17.43 billion, a PE ratio of 17.89, a PEG ratio of 7.67 and a beta of 0.99. Deckers Outdoor has a 12 month low of $93.72 and a 12 month high of $223.98. The stock's fifty day moving average is $106.21 and its 200-day moving average is $129.20.

Deckers Outdoor (NYSE:DECK - Get Free Report) last released its quarterly earnings results on Thursday, July 24th. The textile maker reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.25. Deckers Outdoor had a net margin of 19.42% and a return on equity of 40.54%. The firm had revenue of $964.54 million for the quarter, compared to analysts' expectations of $901.45 million. During the same period in the prior year, the firm earned $4.52 EPS. The business's revenue was up 16.9% on a year-over-year basis. As a group, equities research analysts expect that Deckers Outdoor will post 5.89 EPS for the current fiscal year.

Deckers Outdoor announced that its Board of Directors has approved a share repurchase plan on Thursday, May 22nd that permits the company to repurchase $2.25 billion in outstanding shares. This repurchase authorization permits the textile maker to repurchase up to 11.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at Deckers Outdoor

In related news, insider Angela Ogbechie sold 6,244 shares of Deckers Outdoor stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $103.89, for a total transaction of $648,689.16. Following the completion of the transaction, the insider owned 19,980 shares in the company, valued at approximately $2,075,722.20. This trade represents a 23.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Cindy L. Davis acquired 1,825 shares of the firm's stock in a transaction on Friday, June 6th. The stock was bought at an average price of $109.76 per share, for a total transaction of $200,312.00. Following the completion of the acquisition, the director owned 13,340 shares of the company's stock, valued at approximately $1,464,198.40. The trade was a 15.85% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Deckers Outdoor

Institutional investors have recently added to or reduced their stakes in the stock. HighPoint Advisor Group LLC lifted its stake in shares of Deckers Outdoor by 5.3% in the fourth quarter. HighPoint Advisor Group LLC now owns 1,623 shares of the textile maker's stock worth $330,000 after acquiring an additional 81 shares during the period. Gerber Kawasaki Wealth & Investment Management lifted its position in shares of Deckers Outdoor by 4.6% in the 4th quarter. Gerber Kawasaki Wealth & Investment Management now owns 1,902 shares of the textile maker's stock worth $386,000 after purchasing an additional 84 shares during the period. CIBC Private Wealth Group LLC boosted its stake in shares of Deckers Outdoor by 1.9% in the 4th quarter. CIBC Private Wealth Group LLC now owns 4,896 shares of the textile maker's stock valued at $1,016,000 after purchasing an additional 90 shares during the last quarter. Alcosta Capital Management Inc. increased its position in shares of Deckers Outdoor by 0.3% during the fourth quarter. Alcosta Capital Management Inc. now owns 33,787 shares of the textile maker's stock worth $6,862,000 after buying an additional 90 shares during the period. Finally, Horizon Investments LLC raised its stake in Deckers Outdoor by 4.6% during the first quarter. Horizon Investments LLC now owns 2,179 shares of the textile maker's stock worth $244,000 after buying an additional 96 shares during the last quarter. 97.79% of the stock is currently owned by institutional investors and hedge funds.

Deckers Outdoor Company Profile

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name.