Retail Stock Sinks After Record Highs

Steven Madden is just 8% off of its 52-week high

facebook twitter linkedin


Steven Madden, Ltd. (NASDAQ:SHOO) is a fashion company that designs and markets shoes and fashion accessories for women, men, and children. The company's brands include Steve Madden, Dolce Vita, Betsey Johnson, Blondo, GREATS, BB Dakota, and Mad Love. This afternoon, SHOO is down 0.2% at $47.38.

Steve Madden stock clocked a fresh all-time high of $51.56 on Nov. 17, a few weeks after its quarterly earnings report. Since, the equity has slid 8%. Dividend hunters should keep Steven Madden stock on their radars, too. For shareholders of record as of Dec. 15, a dividend payment of $0.15 will be paid on Dec. 27. Any investors who purchase Steven Madden stock on Dec. 16 or later will not be eligible for this dividend payment. SHOO has a trailing dividend yield of approximately 1.2%.

Although Steven Madden stock hasn’t experienced a significant dip in price like most comparable stocks and currently SHOO trades at a high price-earnings ratio of 25.93, Steven Madden stock offers a solid price-sales ratio of 2.39. The fashion retailer also promises a decent growth rate, which is reflected in SHOO's forward price-earnings ratio of 16.72.

The fashion company also has a solid balance sheet with $260 million in cash and $117 million in total debt, making Steven Madden stock an intriguing option for long-term investors.

Now may be a good time to bet on SHOO's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 38% sits higher than 12% of readings from the last 12 months, suggesting options players are pricing in low volatility expectations for the equity at the moment.

 




 
Special Offers from Schaeffer's Trading Partners