Abercrombie Fitch Got Some Bad News

By Jason Carr

In a report released today, Susan Anderson from FBR Capital downgraded Abercrombie Fitch (NYSE: ANF) to Sell, with a price target of $14. The company’s shares closed yesterday at $16.69, close to its 52-week low of $14.

According to TipRanks.com, Anderson is a 4-star analyst with an average return of 4.0% and a 55.1% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, ClubCorp Holdings, and Children’s Place.

Abercrombie Fitch has an analyst consensus of Hold, with a price target consensus of $18.40.

Based on Abercrombie Fitch’s latest earnings report for the quarter ending July 31, the company posted quarterly revenue of $783 million and GAAP net loss of $13.13 million. In comparison, last year the company earned revenue of $879 million and had a net profit of $41.89 million.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ANF in relation to earlier this year. Most recently, in September 2016, Fran Horowitz-Bonadies, the President of Hollister brand of ANF bought 15,000 shares for a total of $259,800.

Abercrombie & Fitch Co. engages in the retail of apparel, personal care products and accessories. It also operates stores and direct-to-consumer operations. It sells casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids under the Abercrombie & Fitch, Abercrombie, Hollister, RUEHL brands and Gilly Hicks brand. It operates through the Abercrombie and Hollister segments. The Abercrombie segment includes brands Abercrombie and Fitch and Abercrombie Kids. The company was founded in 1892 and is headquartered in New Albany, OH.