Chico’s FAS, Inc. (CHS) Technical Signs to Spot a Rally

Looking into the technicals, Chico’s FAS, Inc. (NYSE:CHS) has scored 96% Sell indication. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the CHS’s short-term trajectory should know that short terms indicators for the stock averaged 80% Sell with an average daily trading volume over the past 20 days at 2769995 shares. CHS stock has overall a 1% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 2546418 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 2660297 shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $7.02. Below this, the next support is placed in the zone of $6.94. Till the time, the CHS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 37.6 on daily chart, which may remain a cause for comfort. If the price breaks below $6.94 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $7.23 mark may result into a pull-back move towards $7.36 level.

Chico’s FAS, Inc. (CHS) is projected to climb by 28.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $12-month high price target. This represents a whopping 69.01 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $9, which represents a return potential of 26.76 percent when compared to the closing price of the stock of $7.1 on Friday, November 23. The lowest price target for the stock is $6.5 — slightly more than -8.45 percent from CHS’s current share price.

Here’s a rundown of insider trading activity for sense of Chico’s FAS, Inc. (NYSE:CHS). The earliest insider trade took place on 06/12/2017. Roeder Ross E parted with a total of 10 thousand shares of company at average share price of $9.75. The total for the sales was set at $97.5 thousand. After this transaction, the Director account balance stood at 109.33 thousand shares. The stock lost -27.18 percent since that insider sale. On 06/01/2017, Roeder Ross E, Director, sold 5 thousand shares at a price per share of $9.5. This removed 47.5 thousand shares from the insider’s fortune and the stock saw a -25.26 percent retreat in value since the news became public. This transaction left 119.33 thousand shares in the Director account. On 03/29/2017, Brand President WH|BM Noce Colaco Donna performed a sale transaction worth $732.66 thousand. This sale at $14.3 each has eliminated 51.24 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -50.35 percent decrease since the transaction was reported. The insider now is left with 317.94 thousand shares remaining in the account. Lund John R, who performs the SVP – Supply Chain & Operation job, bought 2 thousand shares for $27.56 thousand. The acquisition occurred on 03/13/2017 was priced at $13.78 per share. The share price plunged -48.48 percent since the reporting date. Lund John R now left with a stake of 30.19 thousand CHS stock worth $214.35 thousand after the insider buying.

CHS shares dropped -0.05 points or -0.7 percent on Friday to $7.1 with a light trade volume of 1.632 million shares. After opening the session at $7.16, the shares went as high as $7.28 and as low as $7.07, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $892 million and now has 125.69 million shares outstanding. Chico’s FAS, Inc. (CHS) stock has lost -5.84 percent of market value in 21 trading days.

Analysts at Telsey Advisory Group lifted target price for shares of Chico’s FAS, Inc. (NYSE:CHS) but repeated their Market Perform recommendation for the stock in their opinion released on May 31. The price target has been raised from $11 to $9. Citigroup analysts have downgraded their rating of CHS stock from Buy to Neutral in a separate flash note to investors on October 16. Analysts at BofA/Merrill downgraded the stock to a Underperform call from its previous Neutral stance, in a research note that dated back to October 11.

CHS stock has a trailing 3-year beta of 0.75, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.63 a share in the trailing twelve months. The stock’s value has fallen -19.5 percent year to date (YTD) against a decline of -15.07 percent in 12 month’s time. The company’s shares still trade -34.86 percent away from its 1-year high of $10.90 and 6.69 percent up from 52-week low of $6.66. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Chico’s FAS, Inc. (CHS) are trading at a P/E ratio of 12.38 times earnings reported for the past 12 months. The industry CHS operates in has an average P/E of 32.24. Its P/E ratio went as low as 13.25X and as high as 740.56 over the 5-year span. Further, it is sporting a 0.4 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.11. 37.8 percent is the gross profit margin for Chico’s FAS, Inc. and operating margin sits at 5.3 percent. Along with this, the net profit margin is 4 percent.

CHS will be declaring its Q3 financial results on November 28. Analysts are forecasting revenue to suffer decline of -3.1 percent to $516M in the next fiscal quarter, while earnings are seen soaring by nearly -38.46 percent to $0.08 per share. History has shown that shares in Chico’s FAS, Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.13 per share, better than the $0.12, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $545M, better than the $541M analysts expected. Earnings are estimated to increase by 2.3 percent this year, 4.35 percent next year and continue to increase by 15 percent annually for the next 5 years.