Cabela’s Inc. (NYSE:CAB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “After delivering back to back earnings beat, Cabela’s succumbed to a negative earnings surprise in the quarter, with the merchandise gross margin contracting year over year – partly accountable to softness in the apparel category. Additionally, stiff competition and cannibalization remain threats, as these may dent results. Nevertheless, the company has undertaken several cost-saving initiatives to improve operational performance. The cost-saving endeavors include an improvement in IT process, optimum utilization of retail labor, indirect procurement, merchandise sourcing along with retail support functions and supply chain efficiencies. Moreover, management reiterated its guidance for 2016. It envisions 2016 earnings per share to grow in the range of high-single-digits or low-double-digits in comparison with adjusted earnings per share of $2.88 in 2015.”
Other analysts have also issued research reports about the company. MKM Partners reissued a “buy” rating and issued a $56.00 target price on shares of Cabela’s in a report on Tuesday, July 26th. Vetr lowered Cabela’s from a “buy” rating to a “hold” rating and set a $51.80 target price on the stock. in a report on Wednesday, June 8th. Finally, Credit Suisse Group AG reissued a “hold” rating and issued a $38.00 target price on shares of Cabela’s in a report on Tuesday, July 26th. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating and four have given a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $47.89.
Shares of Cabela’s (NYSE:CAB) traded down 0.56% on Tuesday, reaching $51.96. 323,506 shares of the company’s stock traded hands. Cabela’s has a 52 week low of $33.03 and a 52 week high of $54.84. The firm has a market capitalization of $3.56 billion, a P/E ratio of 19.70 and a beta of 1.07. The firm’s 50 day moving average is $50.03 and its 200 day moving average is $50.08.
Cabela’s (NYSE:CAB) last posted its earnings results on Thursday, July 28th. The company reported $0.59 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.62 by $0.03. The firm earned $929.90 million during the quarter, compared to analyst estimates of $905.42 million. Cabela’s had a net margin of 4.44% and a return on equity of 11.16%. The firm’s revenue for the quarter was up 11.2% on a year-over-year basis. During the same period last year, the company posted $0.56 EPS. Analysts expect that Cabela’s will post $3.17 earnings per share for the current fiscal year.
Several large investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. increased its stake in shares of Cabela’s by 6.2% in the second quarter. PNC Financial Services Group Inc. now owns 2,194 shares of the company’s stock valued at $110,000 after buying an additional 128 shares during the last quarter. Carnick & Kubik LLC bought a new stake in shares of Cabela’s during the first quarter valued at approximately $129,000. LS Investment Advisors LLC increased its stake in shares of Cabela’s by 70.1% in the second quarter. LS Investment Advisors LLC now owns 2,997 shares of the company’s stock valued at $150,000 after buying an additional 1,235 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in shares of Cabela’s by 2.3% in the second quarter. Tower Research Capital LLC TRC now owns 3,440 shares of the company’s stock valued at $172,000 after buying an additional 76 shares during the last quarter. Finally, WFG Advisors LP increased its stake in shares of Cabela’s by 17.3% in the second quarter. WFG Advisors LP now owns 3,641 shares of the company’s stock valued at $182,000 after buying an additional 536 shares during the last quarter. Institutional investors and hedge funds own 71.37% of the company’s stock.
Cabela’s Company Profile
Cabela’s Incorporated is a specialty retailer and a direct marketer of hunting, fishing, camping and related outdoor merchandise. The Company offers national and regional brand products, including its Cabela’s brand. The Company’s segments include Retail, Direct, Financial Services, and Corporate Overhead and Other.
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