Investment firm BTIG Research has reaffirmed its “buy” rating for shares of Steven Madden (NASDAQ: SHOO), setting a price target of $50.00. The announcement was made in a research note published on Thursday. This follows a series of similar endorsements from other equities research analysts, reflecting a generally positive outlook for the fashion footwear and accessories company.
On Wednesday, Needham & Company LLC also reiterated a “buy” rating, maintaining the same price target of $50.00. Earlier in the week, the Telsey Advisory Group confirmed an “outperform” rating for Steven Madden, again setting a target price of $50.00. In a contrasting move, Zacks Research upgraded the stock from a “hold” to a “strong-buy” rating on November 6, 2023. Additionally, Citigroup adjusted its rating to “buy” with a price target increased to $41.00, up from a previous $32.00.
A comprehensive review of analysts shows that five have assigned a “buy” rating, four have designated a “hold” rating, and one has given a “sell” rating to the company. According to data from MarketBeat, the average rating for Steven Madden shares stands at “hold,” with an average price target of $43.63.
Recent Earnings and Financial Performance
Steven Madden released its quarterly earnings results on November 5, 2023, reporting earnings per share (EPS) of $0.43, which fell short of analysts’ consensus estimates of $0.44 by $0.01. The company’s revenue for the quarter was $667.88 million, below the anticipated $697.89 million. Despite this miss, revenue increased by 6.9% compared to the same quarter in the previous year. The company reported a return on equity of 14.28% and a net margin of 2.38%, indicating a stable financial position.
Analysts project that Steven Madden will achieve an EPS of 2.66 for the current fiscal year, suggesting ongoing confidence in the company’s growth trajectory.
Institutional Investor Activity
Recent movements among institutional investors indicate a growing interest in Steven Madden. EverSource Wealth Advisors LLC increased its holdings by 86.6% during the second quarter, acquiring an additional 485 shares to reach a total of 1,045 shares valued at approximately $25,000. In another significant move, SBI Securities Co. Ltd. established a new position in the company valued at about $31,000.
Additionally, Global Retirement Partners LLC expanded its stake by an impressive 1,064.3% in the fourth quarter, increasing its holdings to 815 shares valued at $34,000. Other notable increases came from First Horizon Corp, which raised its stake by 55.1%, and Farther Finance Advisors LLC, which boosted its holdings by 79.4%. Currently, institutional investors hold approximately 99.88% of Steven Madden’s shares, reflecting strong institutional confidence in the company.
In summary, the combination of favorable analyst ratings and the growing involvement of institutional investors paints a positive picture for Steven Madden as it continues to navigate the competitive landscape of the fashion industry. The company’s diverse product range and robust distribution channels are expected to support its growth as it heads into the new fiscal year.
