Zacks Investment Research Downgrades Coach, Inc. (COH) to Strong Sell

Coach, Inc. (NYSE:COH) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Tuesday.

According to Zacks, “In the past three months, Coach has exhibited a bearish run. In fact, the stock came under pressure after the company came out with its fourth-quarter fiscal 2017 results, wherein top line fell short of the Zacks Consensus Estimate for the fourth quarter in row and continued to decline year over year. Even earnings beat for the 14th straight quarter failed to provide cushion to the stock. Analysts pointed that not so encouraging outlook for fiscal 2018, in spite of Kate Spade buyout, also dampened investors’ mood. Well we believe this may be short lived as Coach looks much more disciplined in its approach in becoming a multi-brand company and adapt to the changing retail landscape with transformational initiatives revolving around products, stores and marketing. Coach also registered positive comps at its North American segment for the fifth consecutive quarter and sees growth prospects in China, Japan and Europe.”

COH has been the topic of a number of other reports. Vetr lowered Coach from a “hold” rating to a “sell” rating and set a $45.98 target price on the stock. in a research report on Monday, August 7th. Cowen and Company reaffirmed a “buy” rating and set a $46.00 target price on shares of Coach in a research report on Thursday, September 28th. Piper Jaffray Companies lowered Coach from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $48.00 to $43.00 in a research report on Thursday, October 5th. Buckingham Research set a $48.00 target price on Coach and gave the stock a “buy” rating in a research report on Friday, October 6th. Finally, UBS AG cut their target price on Coach from $55.00 to $50.00 and set a “buy” rating on the stock in a research report on Thursday, August 17th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and twenty-one have issued a buy rating to the company. Coach presently has a consensus rating of “Buy” and an average target price of $47.17.

Coach (COH) traded down 0.23% during mid-day trading on Tuesday, reaching $39.38. The company had a trading volume of 535,475 shares. Coach has a 12 month low of $34.07 and a 12 month high of $48.85. The stock’s 50-day moving average is $40.32 and its 200 day moving average is $43.55. The firm has a market capitalization of $11.13 billion, a P/E ratio of 18.84 and a beta of 0.44.

Coach (NYSE:COH) last announced its earnings results on Tuesday, August 15th. The luxury accessories retailer reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.01. The company had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.15 billion. Coach had a return on equity of 21.31% and a net margin of 13.17%. Coach’s revenue for the quarter was down 1.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.45 earnings per share. On average, analysts predict that Coach will post $2.37 earnings per share for the current fiscal year.

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In related news, CAO Todd Kahn sold 4,586 shares of the stock in a transaction that occurred on Wednesday, August 23rd. The stock was sold at an average price of $40.85, for a total transaction of $187,338.10. Following the completion of the sale, the chief accounting officer now owns 72,412 shares in the company, valued at approximately $2,958,030.20. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Melinda Brown sold 8,250 shares of the stock in a transaction that occurred on Tuesday, September 12th. The shares were sold at an average price of $41.28, for a total value of $340,560.00. Following the sale, the senior vice president now owns 42,884 shares of the company’s stock, valued at approximately $1,770,251.52. The disclosure for this sale can be found here. 0.98% of the stock is owned by corporate insiders.

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in Coach by 3.3% during the 2nd quarter. Vanguard Group Inc. now owns 28,909,152 shares of the luxury accessories retailer’s stock valued at $1,368,559,000 after purchasing an additional 926,068 shares during the period. BlackRock Inc. boosted its stake in Coach by 0.5% during the 2nd quarter. BlackRock Inc. now owns 17,761,037 shares of the luxury accessories retailer’s stock valued at $840,807,000 after purchasing an additional 86,847 shares during the period. State Street Corp boosted its stake in Coach by 1.7% during the 1st quarter. State Street Corp now owns 12,130,432 shares of the luxury accessories retailer’s stock valued at $501,354,000 after purchasing an additional 198,818 shares during the period. Jennison Associates LLC boosted its stake in Coach by 13.6% during the 2nd quarter. Jennison Associates LLC now owns 4,637,031 shares of the luxury accessories retailer’s stock valued at $219,517,000 after purchasing an additional 553,533 shares during the period. Finally, Scopus Asset Management L.P. boosted its stake in Coach by 53.9% during the 1st quarter. Scopus Asset Management L.P. now owns 1,700,000 shares of the luxury accessories retailer’s stock valued at $70,261,000 after purchasing an additional 595,300 shares during the period. Hedge funds and other institutional investors own 85.54% of the company’s stock.

About Coach

Coach, Inc (Coach) is a design house of luxury accessories and lifestyle collections. The Company’s product offering uses a range of leathers, fabrics and materials. Its segments include North America, International and Stuart Weitzman. The North America segment includes sales of Coach brand products to North American customers through Coach-operated stores (including the Internet) and sales to North American wholesale customers.

Analyst Recommendations for Coach (NYSE:COH)

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