The G-III Apparel Group Ltd. (GIII) shares are trading at lower $10.77 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $18.73.
To add more color to this target, the company’s high over the last year is $34.42 and the low is $2.96. Over the last 52 weeks, GIII is down -68.71% while the S&P 500 is up 1.02%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, GIII reported a profit of $124.4 million. G-III Apparel Group Ltd. also saw revenues increase to $405.13 million. In addition, GIII has free cash flow of -$79.49 million as of 04-2020. The company’s EBITDA came in at -$33.41 million which compares well with its peers.
GIII booked profit margins of 3.20%, its Return on Equity (ROE) is 7.50%, and its Return on Assets is 3.40%. All told, it is clear that, GIII needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. GIII has a short ratio of 5.22 and outstanding shares of 48.03M.
GIII has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.4 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.90. G-III Apparel Group Ltd. GIII also noted assets of $2.8 billion at the end of the last quarter. Investors should also keep an eye on sector updates as GIII has historically followed its peers on positive news.
All told, G-III Apparel Group Ltd. GIII has strung together solid data and demonstrated underlying fundamentals. At its current valuation, GIII represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
G-III Apparel Group Ltd. GIII is now commanding a market cap of 535.05M and a float of 42.50M. GIII is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of GIII stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in GIII, either long or short, and we have not been compensated for this article.