Zumiez Inc. (NASDAQ:ZUMZ) Sees Large Decline in Short Interest

Key Points

• Short interest in Zumiez fell by 15.2% in March to 1,365,426 shares (about 10.2% of shares short) with a 7.7 days-to-cover based on average daily volume.
• The board approved a $40 million share repurchase program authorizing buybacks of up to 10.2% of the company's stock, signaling management believes the shares may be undervalued.
• Insider Chris K. Visser sold 9,974 shares on April 1 at an average price of $22.21, reducing his stake by 18.65%, while corporate insiders collectively own 21.20% of the stock.

Zumiez Inc. (NASDAQ:ZUMZ - Get Free Report) was the recipient of a significant drop in short interest in the month of March. As of March 31st, there was short interest totaling 1,365,426 shares, a drop of 15.2% from the March 15th total of 1,610,184 shares. Based on an average daily volume of 177,670 shares, the days-to-cover ratio is currently 7.7 days. Approximately 10.2% of the shares of the company are short sold.

Insider Buying and Selling at Zumiez

In related news, insider Chris K. Visser sold 9,974 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $22.21, for a total transaction of $221,522.54. Following the completion of the sale, the insider directly owned 43,500 shares of the company's stock, valued at $966,135. This trade represents a 18.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 21.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Zumiez

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mercer Global Advisors Inc. ADV increased its position in Zumiez by 3.6% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 11,312 shares of the apparel and footwear maker's stock worth $295,000 after purchasing an additional 394 shares in the last quarter. Russell Investments Group Ltd. increased its position in Zumiez by 1.8% during the 4th quarter. Russell Investments Group Ltd. now owns 22,495 shares of the apparel and footwear maker's stock worth $587,000 after purchasing an additional 395 shares in the last quarter. American Century Companies Inc. increased its position in Zumiez by 2.0% during the 2nd quarter. American Century Companies Inc. now owns 40,044 shares of the apparel and footwear maker's stock worth $531,000 after purchasing an additional 797 shares in the last quarter. Pacific Ridge Capital Partners LLC increased its position in Zumiez by 4.8% during the 4th quarter. Pacific Ridge Capital Partners LLC now owns 22,237 shares of the apparel and footwear maker's stock worth $579,000 after purchasing an additional 1,020 shares in the last quarter. Finally, Kestra Advisory Services LLC purchased a new stake in Zumiez during the 4th quarter worth about $27,000. Hedge funds and other institutional investors own 95.45% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have commented on ZUMZ. Wall Street Zen downgraded Zumiez from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Weiss Ratings reissued a "hold (c)" rating on shares of Zumiez in a report on Friday, March 27th. Finally, Zacks Research downgraded Zumiez from a "strong-buy" rating to a "hold" rating in a report on Wednesday, March 11th. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Zumiez has an average rating of "Hold" and an average price target of $18.00.

Zumiez Stock Performance

Zumiez stock opened at $24.33 on Friday. Zumiez has a one year low of $11.31 and a one year high of $31.70. The business has a fifty day moving average of $23.70 and a two-hundred day moving average of $24.13. The company has a market cap of $412.88 million, a P/E ratio of 28.29 and a beta of 0.95.

Zumiez (NASDAQ:ZUMZ - Get Free Report) last announced its quarterly earnings results on Thursday, March 12th. The apparel and footwear maker reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $1.08 by $0.08. Zumiez had a return on equity of 3.91% and a net margin of 1.44%.The business had revenue of $291.31 million during the quarter, compared to analysts' expectations of $289.24 million. During the same quarter last year, the business posted $0.78 earnings per share. The business's revenue for the quarter was up 4.4% on a year-over-year basis. Zumiez has set its Q1 2026 guidance at 0.770-0.870 EPS. Sell-side analysts predict that Zumiez will post -0.12 EPS for the current year.

Zumiez announced that its board has approved a share repurchase program on Wednesday, March 11th that authorizes the company to buyback $40.00 million in shares. This buyback authorization authorizes the apparel and footwear maker to buy up to 10.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

About Zumiez

Zumiez, Inc NASDAQ: ZUMZ is a specialty retailer offering apparel, footwear, accessories and hardgoods targeted at the action-sports lifestyle market. With a focus on skateboarding, snowboarding, BMX and streetwear, the company stocks a mix of leading third-party brands—such as Vans, Nike SB, DC Shoes and The North Face—alongside proprietary private-label merchandise. In addition to traditional fashion items, Zumiez stores carry hardware and equipment tailored to board sports, supporting both amateur and enthusiast consumers.

Originally founded in 1978 in Seattle, Washington, by Tom Campion, Gary Haakenson and Steve Brosvik, Zumiez opened its first branded retail location in 1988.

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