Kate Spade Shares Slide After Earnings Miss

On Tuesday, Kate Spade & Co (NYSE:KATE) stock opened its trade at $18.50 and after floating in a range of $17.76 to $18.56, settled at $18.16. Adjusted EBITDA was $30 million for the first quarter of 2017, counting the formerly mentioned fees and expenses of $2 million related to the Company's ongoing review of planned alternatives, contrast to Adjusted EBITDA of $35 million for the first quarter of 2016.

More recently, Coach has emerged as the most likely buyer, with analysts estimating that the buyout sum could top $2 billion. The company's 50-day moving average price is $22.13 and its 200 day moving average price is $18.71. Mizuho reiterated a "buy" rating and issued a $21.00 target price on shares of Kate Spade & Co in a research report on Wednesday, December 28th.

Currently, the stock carries a price to earnings ratio of 0, a price to book ratio of 1.37, and a price to sales ratio of 2.49. The firm had revenue of $470 million for the quarter, compared to analyst estimates of $472.80 million.

KATE has a 1-year high price of $ 26.46 and 1-year low price of $14.02. An influential analyst on Wall Street may give a stock that is now trading at $60 a one-year price target of $90; however, there is no concrete way to calculate a price target. The company has a consensus rating of "Hold" and an average target price of $22.73.

EPS in next five year years is expected to touch 27.00% while EPS growth in past 5 year was 0.50% along with sales growth of 4.70% in the last five years. Comparatively, Kate Spade & Company posted earnings of $0.22 per share in the same quarter past year.

Kate Spade & Company (KATE) now has P/E (Price to Earnings) ratio of 15.48 while the company's industry has 105.44 P/E and the sector P/E is 27.04.

Shares in the company were 3.6% lower at $18.70 in early trade.

COPYRIGHT VIOLATION NOTICE: "Kate Spade & Co (KATE) Rating Increased to Strong-Buy at Vetr Inc." was originally published by The Cerbat Gem and is owned by of The Cerbat Gem. The original version of this piece of content can be viewed at https://www.thecerbatgem.com/2017/04/20/vetr-inc-upgrades-kate-spade-co-kate-to-strong-buy-2-updated.html. Riverhead Capital Management LLC now owns 6,300 shares of the textile maker's stock valued at $108,000 after buying an additional 195 shares during the period.

01/25/2017 - Kate Spade was downgraded to " by analysts at Telsey Advisory Group. Ltd. purchased a new stake in Kate Spade & Co during the fourth quarter worth $127,000.

Despite declines, Kate Spade has attracted interest from at least six potential bidders in recent months, after activist firm Caerus Investors in November penned a letter to the company urging it to consider a sale. Hedge funds and other institutional investors own 98.36% of the company's stock.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of Kate Spade & Company (KATE) stands at 4.65 while the industry's and the sector's growth for next 5 years ticked at 16.83 and 3.72 respectively.

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