Zacks Investment Research cut shares of HHGregg, Inc. (NYSE:HGG) from a hold rating to a strong sell rating in a research report sent to investors on Monday.
According to Zacks, “hhgregg reported a wider-than-expected loss in the third-quarter fiscal 2017. Sales lagged the Zacks Consensus Estimate, due to competitive pressures in the market, specifically in consumer electronics category. Adjusted loss of $1.70 per share was wider than the prior-year quarter loss of $0.15, due to a decline in sales, lower comparable store sales (comps) and decline in gross margin. In fact, hhgregg has been reporting losses and declining revenues for the past many quarters, primarily due to weak comps. In fact, hhgregg shares have declined in comparison to the Zacks categorized industry over the past one year. While the company is relying on initiatives to revive the consumer electronics category in the long term, the segment will continue to witness a downtrend as a percentage of total sales over the near term, as the company is under a lot of pressure and facing volatility.”
Shares of HHGregg (NYSE:HGG) traded up 5.06% during trading on Monday, reaching $0.55. 126,878 shares of the company’s stock were exchanged. The stock’s market capitalization is $15.29 million. HHGregg has a 52 week low of $0.52 and a 52 week high of $2.72. The stock has a 50 day moving average price of $1.11 and a 200-day moving average price of $1.67.
HHGregg (NYSE:HGG) last announced its quarterly earnings results on Thursday, January 26th. The company reported ($1.70) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.39) by $1.31. The company earned $453 million during the quarter, compared to analysts’ expectations of $512.37 million. HHGregg had a negative net margin of 5.25% and a negative return on equity of 80.74%. The business’s revenue for the quarter was down 23.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.17) EPS. Analysts predict that HHGregg will post ($2.78) earnings per share for the current year.
In related news, CEO Robert James Riesbeck purchased 50,000 shares of the business’s stock in a transaction dated Wednesday, November 9th. The stock was acquired at an average price of $1.45 per share, for a total transaction of $72,500.00. Following the acquisition, the chief executive officer now directly owns 253,070 shares of the company’s stock, valued at approximately $366,951.50. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders bought a total of 70,000 shares of company stock valued at $102,000 in the last quarter. Insiders own 53.10% of the company’s stock.
A number of large investors have recently modified their holdings of HGG. Connor Clark & Lunn Investment Management Ltd. boosted its stake in shares of HHGregg by 4.4% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 63,400 shares of the company’s stock worth $117,000 after buying an additional 2,700 shares during the last quarter. Northern Trust Corp boosted its stake in shares of HHGregg by 3.8% in the third quarter. Northern Trust Corp now owns 174,251 shares of the company’s stock worth $320,000 after buying an additional 6,393 shares during the last quarter. Finally, Stifel Financial Corp boosted its stake in shares of HHGregg by 99.5% in the second quarter. Stifel Financial Corp now owns 441,000 shares of the company’s stock worth $781,000 after buying an additional 220,000 shares during the last quarter. 63.12% of the stock is currently owned by hedge funds and other institutional investors.
HHGregg Company Profile
hhgregg, Inc (hhgregg) is an appliance, electronics and furniture retailer. The Company operates as a multi-regional retailer with approximately 230 brick-and-mortar stores in 20 states that also offer global and local brands across the nation through hhgregg.com. It also sells a suite of services, including third-party premium service plans (PSPs), third-party in-home service and repair of its products, delivery and installation, and in-home repair and maintenance.
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