Deckers Outdoor (NYSE:DECK) to Repurchase $2.25 billion in Shares

Deckers Outdoor (NYSE:DECK) announced that its Board of Directors has authorized a share repurchase program on Thursday, May 22nd, RTT News reports. The company plans to buyback $2.25 billion in shares. This buyback authorization authorizes the textile maker to repurchase up to 11.7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Deckers Outdoor Stock Down 20.0%

Shares of DECK opened at $100.89 on Friday. Deckers Outdoor has a 52 week low of $93.72 and a 52 week high of $223.98. The company has a market capitalization of $15.31 billion, a price-to-earnings ratio of 16.36, a PEG ratio of 1.68 and a beta of 1.11. The stock’s 50-day moving average price is $114.55 and its 200-day moving average price is $158.06.

Deckers Outdoor (NYSE:DECK) last issued its quarterly earnings results on Thursday, May 22nd. The textile maker reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.57 by $0.43. The company had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. Deckers Outdoor had a return on equity of 41.71% and a net margin of 19.14%. Deckers Outdoor’s revenue for the quarter was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.82 earnings per share. As a group, equities analysts anticipate that Deckers Outdoor will post 5.89 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages recently weighed in on DECK. Guggenheim restated a “neutral” rating on shares of Deckers Outdoor in a research note on Friday, January 31st. Barclays reaffirmed an “overweight” rating and set a $128.00 target price (down from $129.00) on shares of Deckers Outdoor in a research report on Thursday. Telsey Advisory Group lowered Deckers Outdoor from an “outperform” rating to a “market perform” rating in a research report on Friday. Evercore ISI reaffirmed an “in-line” rating and set a $110.00 target price (down from $235.00) on shares of Deckers Outdoor in a research report on Friday. Finally, Cowen reaffirmed a “buy” rating on shares of Deckers Outdoor in a research report on Tuesday. Twelve investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $134.68.

Insiders Place Their Bets

In other news, Director Maha Saleh Ibrahim sold 300 shares of the firm’s stock in a transaction that occurred on Thursday, March 6th. The stock was sold at an average price of $134.48, for a total value of $40,344.00. Following the transaction, the director now owns 10,388 shares in the company, valued at $1,396,978.24. This trade represents a 2.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director David Powers sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, February 28th. The shares were sold at an average price of $138.84, for a total value of $3,471,000.00. Following the completion of the transaction, the director now owns 241,777 shares in the company, valued at approximately $33,568,318.68. This trade represents a 9.37% decrease in their position. The disclosure for this sale can be found here. 0.40% of the stock is currently owned by company insiders.

Deckers Outdoor Company Profile

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name.