As of its most recent Form 13F filing with the Securities and Exchange Commission, Victory Capital Management Inc. has cut its position in Guess?, Inc. (NYSE:GES) by 30.7% in the fourth quarter, selling 152,679 shares during that period. The institutional investor now owns 345,217 shares of Guess’ stock after this move and currently holds around 0.63% ownership worth $7,999,000.
Guess?’s mission is to deliver contemporary apparel and accessories that embody American lifestyle while incorporating European fashion sensibilities. The company engages in designing, marketing, distributing and licensing products for men, women and children through various segments like Americas Retail, Americas Wholesale, Europe, Asia and Licensing.
On May 26th of 2023 Guess?’s stock opened at $18.80 exhibiting a PE ratio of 8.43 and beta of 1.93 with a market capitalization of $1.05 billion. The quick ratio stands at .92 with a current ratio of 1.59 indicating sufficient liquidity to service short-term debts.
The stock’s overall performance has seen better days as it experienced a dip from a year-high of $24.15 to its year-low of $14.27 during their last fiscal year also ending on May 26th fittingly.
Though the investment firm may have decided to reduce its holding in Guess?, they are not alone as many other investors make independent decisions based off security valuations or interest in alternative investments among reasons still unknown to the public eye given it is still deemed uncertain why management took this approach regarding their previous holding in the company.
This move has left many speculating about what Guess? can expect for itself moving forward concerning investor confidence and future financial outcomes predicated upon upcoming implementation actions taken by management if any at all toward improving company outlook down the line given its somewhat tumultuous past twelve months leading up to today’s news announcement. The future for Guess? will depend on how management learns and grows from the recent challenges experienced by their brand and executes a strategy conducive towards stronger investor confidence in the company moving forward.
Institutional Investors Show Confidence in Guess’? with Increased Stakes and Positive Growth Prospects
Guess?, Inc. is a well-known global brand, engaged in the designing, marketing, and licensing of modern clothing and accessories that reflect both American lifestyle and European fashion sensibilities.
As of late May 2023, notable institutional investors have increased their stakes in Guess?. PNC Financial Services Group now owns approximately 2,692 shares valued at $59,000 after buying an additional 581 shares in the past quarter. Nisa Investment Advisors LLC has boosted its position by 244.9%, owning around 4,267 shares valued at $65,000 after purchasing an extra 3,030 shares.
Mutual of America Capital Management LLC also increased its holdings by 10.2%, owning roughly 6,640 shares worth $97,000 after purchasing an additional 617 shares during the period. Another example is Zurcher Kantonalbank Zurich Cantonalbank; it has raised its position by 31.5%, owning approximately 4,894 shares of the company’s stock worth $101,000 after purchasing an additional 1,173 shares during the quarter.
Institutional investors hold about 58.81% of the company’s total outstanding shares.
Although certain equities research analysts have rated Guess’ as merely a “hold” rating according to Bloomberg’s analysis; StockNews.com upgraded Guess’ from a “hold” rating to a “buy” rating on Friday while Small Cap Consu reaffirmed its “buy” rating on Tuesday for Guess’. TheStreet cut down its score from a “B” rating to “C+” on Wednesday last week.
Guess’? share price has been highly volatile over time because of new entrants into the industry with similar styles and trends alongside e-commerce challenges that have come from Amazon dominance in recent years; however recently released first-quarter earnings report show positive signs for shareholders as revenue was higher than expectations; despite being down-year-to-year due to a decrease of 4%. Meanwhile, Guess’? net margin was 5.57%, providing investors with hope for the future.
Analysts predict earnings per share to be around $2.68 by the end of this fiscal year.
Guess’? has recently declared a quarterly dividend and increased it from $0.23 to $0.30, representing an annualized yield of 6.38%. It is quite possible that institutional investors chose to increase their stakes in Guess’? shares because they see positive growth prospects and expect higher dividend payout returns for their shareholders in the future, making this once again a lucrative option to own for investments in 2023 and beyond.
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