I spoke about Skechers a little under a month ago,
In a note to clients, Susquehanna Research analyst Sam Poser upgraded the company to positive from neutral and raised his target price on the stock to $37 from $32, noting that his check-ins at various retail locations and also recent results from wholesalers point to stronger demand for the company’s products.
So, although Skechers got upgrade and although the price rose 3% on the news, it was actually an opportunity to short the stock as suggested by the daily supply at $34 with a price target at the gap fill at $28.
Last Thursday of last week Skechers reported earnings per share of 71 cents for the first quarter of the year vs 75 cents from the same time last year. In addition, the quarterly results missing Wall Street’s earnings per share estimate of 72 cents. Lastly, Skechers reported revenue of $1.28 billion, which was also below analysts estimate.
After spiking less than $1 above the daily zone, the stock declined 10% since the earnings report.
Although trading is a game of probability, I love being right when it comes to analysts’ forecast. However, I haven’t won yet, price is still a little over $1 away from my target. Will this particular analyst with a target price at $37 be right before price hits $28…stay tuned?
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.