Schaeffer's 43rd Anniversary Stock Picks in 2024

Rocky Brands Stock: A Small Cap Company with Strong Fundamentals

The footwear stock has more than tripled in in less than a year

Apr 12, 2021 at 11:20 AM
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Rocky Brands, Inc. (NASDAQ:RCKY) is an American footwear company based out of Nelsonville, Ohio. The company designs, develops, manufactures, and markets outdoor, work, western and military footwear, as well as other outdoor and work apparel and accessories. The Rocky Brands portfolio of includes brand names like Rocky, Georgia Boot, Durango, Lehigh, and the licensed brand Michelin.

Last month, Rocky Brands made two big announcements. On March 8, Rocky Brands announced the approval of a new share repurchase program of up to $7,500,000 of RCKY's outstanding common stock, replacing its previous stock repurchase program. Then, on March 15Rocky Brands announced the completion of its previously announced acquisition. Rocky Brands acquired the performance and lifestyle footwear business of Honeywell International, including The Original Muck Boot Company and XTRATUF footwear brands for a $230 million price tag.

RCKY has increased 172% year-over-year and 230% from its two-year low of $16.57. Shares of Rocky Brands stock are also up nearly 100% year-to-date. However, Rocky Brands stock is currently down 8% from its record high of $61.45. Additionally, Rocky Brands stock offers a forward dividend of $0.56, which is equivalent to a dividend yield of 1.02%. At last check, the equity was trading up 2.6% at $56.11.

Just two analysts are in coverage of Rocky Brands stock, and heading into today's trading they are split down the middle. Specifically, one sports a tepid "hold" and the other carries a "buy" recommendation. Meanwhile, the equity's average 12-month price target of $50 is a more than 10% discount to current levels.

 

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