ZUMZ Stumbles Despite Post-Earnings Praise

D.A. Davidson and Jefferies both lifted their price targets

Digital Content Manager
Jun 5, 2020 at 9:44 AM
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The shares of Zumiez Inc (NASDAQ:ZUMZ) are off 4.1% to trade at $28 this morning, following the apparel retailer's first-quarter report. Zumiez posted losses of 84 cents per share and $137.77 million in revenue, missing analysts' estimates. The firm declined to provide a current-quarter forecast at this time, but added that its same-store sales for locations it opened in May, along with its e-commerce traffic increased by 79.6%. 

Despite the miss, Jefferies and D.A. Davidson lifted their price targets to $35 and $28, respectively. Coming into today, the consensus 12-month price target sat at $31.33, which is a 7.3% premium to last night's close. Meanwhile, all three of the analysts in coverage consider ZUMZ a "hold." 

Options players have taken a more optimistic approach to Zumiez stock, with 5.36 calls picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) in the last 10 weeks. This ratio sits in the 96th percentile of its annual range, suggesting a healthier-than-usual appetite for bearish bets of late. 

On the charts, ZUMZ just notched its fourth-straight win yesterday, rallying atop the 180-day moving average for the first time since February 25. The security is testing the stability of this trendline today. And while it boasts a roughly 65% win for the quarter, ZUMZ is still down over 15% for the year. 

 

 

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