Abercrombie & Fitch Co. (ANF) Showing Air Of Cautious Optimism?

On 06 December, shares of Abercrombie & Fitch Co. (NYSE:ANF) closed higher after a volatile session. The shares accumulated 0.45 points or 2.38 percent at $19.32 with a heavy trade volume of 4.323 million shares. After opening the session at $18.79, the shares went as high as $19.65 and as low as $18.47, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.31 billion and now has 68.01 million shares outstanding. Abercrombie & Fitch Co. (ANF) stock has lost -6.17 percent of market value in 21 trading days.

ANF stock has a trailing 3-year beta of 0.49, 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 $1.01 a share in the trailing twelve months. The stock’s value has surged 10.84 percent year to date (YTD) against a rise of 12.72 percent in 12 month’s time. The company’s shares still trade -34.93 percent away from its 1-year high of $29.69 and 26.44 percent up from 52-week low of $15.28. The average consensus rating on the company is 3.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Abercrombie & Fitch Co. (ANF) will probably climb 3.93 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $55.5-month high price target. This represents a whopping 187.27 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $20, which represents a return potential of 3.52 percent when compared to the closing price of the stock of $19.32 on Thursday, December 06. The lowest price target for the stock is $14 — slightly more than -27.54 percent from ANF’s current share price.

History has shown that shares in Abercrombie & Fitch Co. have gone up on 19 different earnings reaction days and are predicted to add 0.11 percent when the company reports upcoming earnings. Investors will get their next glimpse of ANF’s Q4 earnings on February 27. Analysts are forecasting revenue to suffer decline of -4.8 percent to $1.14B in the fiscal fourth quarter, while earnings are seen soaring by nearly -18.12 percent to $1.13 per share. It earned $0.33 per share, better than the $0.2, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $842M, worse than the $845M analysts expected. Earnings are estimated to increase by 571.4 percent this year, 17.23 percent next year and continue to increase by 18 percent annually for the next 5 years.

Let’s take a look at some insider activity at Abercrombie & Fitch Co. (NYSE:ANF) and see the pattern. The earliest insider trade took place on 12/04/2018. Anderson Kerrii B gathered a total of 2 thousand shares of company at average share price of $19.72. The total for the purchase was set at $39.44 thousand. After this transaction, the Director account balance stood at 6.69 thousand shares. The stock lost -2.03 percent since that insider purchase. On 06/20/2018, Andersen Stacia J.P., Pres-Aber&Ftch&aber kids brnds, sold 28 thousand shares at a price per share of $27.55. This removed 771.4 thousand shares from the insider’s fortune and the stock saw a -29.87 percent retreat in value since the news became public. This transaction left 18.25 thousand shares in the Pres-Aber&Ftch&aber kids brnds account.

On 06/05/2018, Director Anderson Kerrii B performed a purchase transaction worth $48.06 thousand. This purchase at $24.03 each has added 2 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -19.6 percent decrease since the transaction was reported. The insider now is left with 2.5 thousand shares remaining in the account. Martinez Arthur C, who performs the Director job, sold 20 thousand shares for $474.4 thousand. The disposal occurred on 03/08/2018 was priced at $23.72 per share. The share price plunged -18.55 percent since the reporting date. Martinez Arthur C now left with a stake of 0 thousand ANF stock worth $0 thousand after the insider selling.

The stock is currently hovering around the first support level of $18.64. Below this, the next support is placed in the zone of $17.97. Till the time, the ANF stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 53.9 on daily chart, which may remain a cause for concern. If the price breaks below $17.97 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $19.82 mark may result into a pull-back move towards $20.33 level.

Shares of Abercrombie & Fitch Co. (ANF) are trading at a P/E ratio of 21.4 times earnings reported for the past 12 months. The industry ANF operates in has an average P/E of 30.76. Its P/E ratio went as low as 35.92X and as high as 196.1 over the 5-year span.Further, it is sporting a 0.36 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2. 59.9 percent is the gross profit margin for Abercrombie & Fitch Co. and operating margin sits at 2.8 percent. Along with this, the net profit margin is 0.7 percent.