Zacks Investment Research downgraded shares of Citi Trends Inc. (NASDAQ:CTRN) from a hold rating to a strong sell rating in a report published on Monday.
According to Zacks, “After posting a beat in the last quarter, Citi Trends reverted to its negative earnings surprise trend in third-quarter fiscal 2016. The company delivered a loss in the quarter, which compared unfavorably with the earnings reported in the year-ago period and our estimate. Further, sales lagged estimates and comps dipped year over year, due to soft average units sold and external factors like the Hurricane Matthew and unseasonably warm weather, which weighed upon demand for fall products. However, trends seemed to improve as the weather normalized, boosting fourth-quarter comps. Also, the company remains impressed with its Home division’s performance which is expected to deliver a robust show in the final quarter. Given these factors and a solid inventory position at the start of the fourth quarter, Citi Trends remains optimistic about its ongoing comps momentum. Nonetheless, the lowered gross margin view and the drab third quarter hurt estimates.”
A number of other research firms have also recently commented on CTRN. TheStreet raised Citi Trends from a hold rating to a buy rating in a report on Monday, September 19th. MKM Partners reaffirmed a neutral rating and issued a $16.00 price objective on shares of Citi Trends in a research note on Wednesday, August 17th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $18.50.
Shares of Citi Trends (NASDAQ:CTRN) opened at 18.00 on Monday. Citi Trends has a 52 week low of $14.01 and a 52 week high of $22.73. The company has a 50-day moving average price of $20.04 and a 200-day moving average price of $18.18. The stock has a market cap of $264.15 million, a price-to-earnings ratio of 20.88 and a beta of 0.34.
Citi Trends (NASDAQ:CTRN) last posted its quarterly earnings results on Tuesday, November 22nd. The company reported ($0.06) EPS for the quarter, missing the Zacks’ consensus estimate of $0.03 by $0.09. Citi Trends had a return on equity of 5.27% and a net margin of 1.64%. The business earned $160.70 million during the quarter, compared to analysts’ expectations of $167.45 million. During the same period in the prior year, the firm posted $0.04 earnings per share. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. Equities analysts anticipate that Citi Trends will post $1.00 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 13th. Stockholders of record on Tuesday, November 29th will be given a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 1.31%. The ex-dividend date is Friday, November 25th. Citi Trends’s dividend payout ratio is currently 31.17%.
Institutional investors have recently added to or reduced their stakes in the stock. Acrospire Investment Management LLC bought a new position in Citi Trends during the third quarter valued at $118,000. BlackRock Advisors LLC increased its position in Citi Trends by 9.5% in the third quarter. BlackRock Advisors LLC now owns 7,722 shares of the company’s stock valued at $154,000 after buying an additional 670 shares in the last quarter. Citadel Advisors LLC bought a new position in Citi Trends during the third quarter valued at $202,000. Stoneridge Investment Partners LLC bought a new position in Citi Trends during the second quarter valued at $203,000. Finally, The Manufacturers Life Insurance Company bought a new position in Citi Trends during the third quarter valued at $215,000. 93.07% of the stock is currently owned by hedge funds and other institutional investors.
About Citi Trends
Citi Trends, Inc is a retailer of urban fashion apparel and accessories. The Company’s segment is retail operations. The Company operates approximately 520 stores in both urban and rural markets in over 30 states. The Company offers products under its brands, such as Citi Steps and Red Ape. The Company’s merchandise includes apparel, accessories and home.