Think Twice Before Hating Pier 1 Imports, Inc. (PIR)

Investors will get their next glimpse of PIR’s Q4 earnings on April 10. Analysts are forecasting revenue to suffer decline of -16.1 percent to $430M in the next fiscal quarter, while earnings are seen soaring by nearly -195.24 percent to -$0.2 per share. History has shown that shares in Pier 1 Imports, Inc. have gone down on 23 different earnings reaction days and are predicted to add 0.09 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.36 per share, worse than the -$0.06, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $413M, worse than the $452M analysts expected. Earnings are estimated to increase by -62.1 percent this year, 46.2 percent next year and continue to increase by 5 percent annually for the next 5 years.

Pier 1 Imports, Inc. (PIR) will probably climb -100 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $1-month high price target. This represents a whopping 11.11 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $0.88, which represents a return potential of -2.22 percent when compared to the closing price of the stock of $0.9 on Friday, January 11. The lowest price target for the stock is $0.25 — slightly more than -72.22 percent from PIR’s current share price.

The stock is currently hovering around the first support level of $0.77. Below this, the next support is placed in the zone of $0.64. Till the time, the PIR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.69 on daily chart, which may remain a cause for concern. If the price breaks below $0.64 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.02 mark may result into a pull-back move towards $1.14 level.

On 11th of January, Pier 1 Imports, Inc. (NYSE:PIR) shares ended higher after a volatile session. The shares accumulated 0.13 points or 16.46 percent at $0.9 with a heavy trade volume of 13.59 million shares. After opening the session at $0.79, the shares went as high as $1.01 and as low as $0.76, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $72.71 million and now has 80.78 million shares outstanding. Pier 1 Imports, Inc. (PIR) stock has lost -26.83 percent of market value in 21 trading days.

PIR stock has a trailing 3-year beta of 2.9, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.43 a share in the trailing twelve months. The stock’s value has surged 194.31 percent year to date (YTD) against a decline of -78.37 percent in 12 month’s time. The company’s shares still trade -78.82 percent away from its 1-year high of $4.25 and 223.16 percent up from 52-week low of $0.28. The average consensus rating on the company is 3.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Pier 1 Imports, Inc. (PIR) are trading at a P/E ratio of 11.4 times earnings reported for the past 12 months. The industry PIR operates in has an average P/E of 28.39. Its P/E ratio went as low as 10.27X and as high as 18.86 over the 5-year span. Further, it is sporting a 0.04 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.29. 32.3 percent is the gross profit margin for Pier 1 Imports, Inc. and operating margin sits at -5.7 percent. Along with this, the net profit margin is -7 percent.

Let’s take a look at some insider activity at Pier 1 Imports, Inc. (NYSE:PIR) and see the pattern. The earliest insider trade took place on 04/27/2018. London Terry E gathered a total of 10 thousand shares of company at average share price of $2.31. The total for the purchase was set at $23.1 thousand. After this transaction, the Director account balance stood at 374.25 thousand shares. The stock lost -61.04 percent since that insider purchase. On 04/10/2018, Towle & Co, See Footnote 1 and Remarks, purchased 0.28 thousand shares at a price per share of $3.53. This added 0.97 thousand shares to the insider’s fortune and the stock saw a -74.5 percent retreat in value since the news became public. This transaction left 8.76 million shares in the See Footnote 1 and Remarks account.

On 04/10/2018, 10% Owner Towle & Co performed a purchase transaction worth $0.97 thousand. This purchase at $3.53 each has added 0.28 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -74.5 percent decrease since the transaction was reported. The insider now is left with 8.76 million shares remaining in the account. Towle & Co, who performs the 10% Owner job, bought 4.33 thousand shares for $13.86 thousand. The acquisition occurred on 03/29/2018 was priced at $3.2 per share. The share price plunged -71.88 percent since the reporting date. Towle & Co now left with a stake of 8.77 million PIR stock worth $7.89 million after the insider buying.