Coach’s share price gain weights its stockWednesday, 26 September 2012
Despite earlier in September Morgan Stanley stated that management commentary suggests that Q3 remains on track and the firm is positive regarding Coach’s strategy details and still views the shares as attractive, the American firm gave Coach an 'Overweight' rating.
Less than ten days later, the stock is again commented in Wall Street, being analysts at Credit Suisse the last to add to the stock recent downgrades. As they stress, the stock has risen more than 20 percent since Coach reported fourth quarter results on July 31, 2012. That compares to a gain of 5.9 percent for the S&P 500.
As a result, the shares are now trading at 15x Credit Suisse’s 2013 earnings per share estimate of 4.14 dollars. Analyst Christian Buss explained in a note to clients that “We have increasing concerns about heightening competitive pressures on Coach as footwear, accessories and beauty categories gain shelf space across retail concepts.”
In addition, Pennystocksinsiders.com found company insiders sold 6,761 shares in the last three months, at stock price 56.76 dollars each.
Share prices of Coach have traded as high as 79.70 dollars per share and as low as 48.24 dollars in the past 52 weeks. Its price, as of the latest close, was up 17percent compared with the 52-week low and was 41percent below the 52-week high. The company's market capitalization after the recent close was 16.15 billion dollars.