Zacks Investment Research Lowers Hhgregg Inc. (HGG) to Hold

Zacks Investment Research cut shares of Hhgregg Inc. (NYSE:HGG) from a buy rating to a hold rating in a research note issued to investors on Wednesday.

According to Zacks, “Estimates have increased slightly over the past 60 days period after hhgregg reported narrower-than-expected loss in the first quarter of fiscal 2017. We note that hhgregg has been reporting losses and declining revenues for the past many quarters, primarily due to weak comparable store sales. Nevertheless, we are encouraged by hhgregg’s strategic initiatives and its savings and revenue initiatives, which focus on stabilizing the business by reversing the negative sales trends, optimizing marketing spending and improving cost structure. These initiatives have generated positive EBITDA results since the past one year and are expected to continue the trend in the near term as well. The company is also backing on its appliance category and has plans to expand its Fine Lines store program to boost sales. However, we believe that any sort of improvement will take time as the company is under a lot of pressure and facing volatility.”

Hhgregg (NYSE:HGG) opened at 1.82 on Wednesday. The stock’s market capitalization is $50.59 million. The stock has a 50 day moving average of $1.95 and a 200 day moving average of $1.88. Hhgregg has a 52-week low of $1.46 and a 52-week high of $5.82.

Hhgregg (NYSE:HGG) last issued its earnings results on Thursday, August 4th. The company reported ($0.21) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.31) by $0.10. Hhgregg had a negative net margin of 2.75% and a negative return on equity of 21.66%. The company had revenue of $423.57 million for the quarter, compared to the consensus estimate of $416.45 million. During the same quarter in the previous year, the company earned ($0.17) EPS. The firm’s revenue for the quarter was down 4.0% compared to the same quarter last year. On average, equities research analysts forecast that Hhgregg will post ($1.10) EPS for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Spark Investment Management LLC increased its position in shares of Hhgregg by 280.7% in the first quarter. Spark Investment Management LLC now owns 344,700 shares of the company’s stock valued at $727,000 after buying an additional 254,148 shares during the period. Stifel Financial Corp increased its position in shares of Hhgregg by 99.5% in the second quarter. Stifel Financial Corp now owns 441,000 shares of the company’s stock valued at $781,000 after buying an additional 220,000 shares during the period. Finally, Renaissance Technologies LLC increased its position in shares of Hhgregg by 23.1% in the first quarter. Renaissance Technologies LLC now owns 712,300 shares of the company’s stock valued at $1,503,000 after buying an additional 133,700 shares during the period. Institutional investors and hedge funds own 65.61% of the company’s stock.

About Hhgregg

hhgregg, Inc (hhgregg) is an appliance, electronics and furniture retailer. The Company operates as a multi-regional retailer with approximately 230 brick-and-mortar stores in 20 states that also offer global and local brands across the nation through It also sells a suite of services, including third-party premium service plans (PSPs), third-party in-home service and repair of its products, delivery and installation, and in-home repair and maintenance.

5 Day Chart for NYSE:HGG

Get a free copy of the Zacks research report on Hhgregg (HGG)

For more information about research offerings from Zacks Investment Research, visit

Receive News & Ratings for Hhgregg Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hhgregg Inc. and related companies with's FREE daily email newsletter.

Leave a Reply

© 2006-2016 Mideast Time.