Ermenegildo Zegna (NYSE:ZGN) Shares Gap Down – Should You Sell?

Shares of Ermenegildo Zegna N.V. (NYSE:ZGN) gapped down prior to trading on Wednesday . The stock had previously closed at $14.49, but opened at $13.96. Ermenegildo Zegna shares last traded at $13.9850, with a volume of 109,806 shares trading hands.

Analysts Set New Price Targets

Several research firms have weighed in on ZGN. Wall Street Zen upgraded shares of Ermenegildo Zegna from a “hold” rating to a “buy” rating in a report on Saturday, June 13th. TD Cowen raised shares of Ermenegildo Zegna from a “hold” rating to a “buy” rating and boosted their price target for the company from $13.00 to $15.00 in a report on Wednesday, May 20th. The Goldman Sachs Group cut shares of Ermenegildo Zegna from a “buy” rating to a “neutral” rating and upped their price objective for the company from $13.30 to $14.00 in a research report on Wednesday. UBS Group reaffirmed a “buy” rating and set a $14.50 price objective on shares of Ermenegildo Zegna in a research note on Friday, May 1st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Ermenegildo Zegna in a report on Monday, April 20th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $12.68.

Ermenegildo Zegna Stock Performance

The company has a debt-to-equity ratio of 0.15, a current ratio of 1.59 and a quick ratio of 0.91. The firm has a 50 day simple moving average of $13.10 and a 200-day simple moving average of $11.34.

Ermenegildo Zegna (NYSE:ZGN) last posted its earnings results on Friday, March 20th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.11). The firm had revenue of $577.83 million for the quarter, compared to the consensus estimate of $1.17 billion. Equities research analysts predict that Ermenegildo Zegna N.V. will post 0.46 EPS for the current fiscal year.

Ermenegildo Zegna Cuts Dividend

The firm also recently declared an annual dividend, which will be paid on Wednesday, July 29th. Shareholders of record on Monday, July 6th will be issued a dividend of $0.12 per share. This represents a yield of 99.0%. The ex-dividend date is Monday, July 6th.

Insiders Place Their Bets

In other Ermenegildo Zegna news, Director Alessandro Sartori sold 6,505 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $13.12, for a total value of $85,345.60. Following the transaction, the director directly owned 142,237 shares of the company’s stock, valued at approximately $1,866,149.44. The trade was a 4.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gian Franco Santhia sold 5,768 shares of the business’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $13.12, for a total transaction of $75,676.16. Following the transaction, the chief financial officer owned 44,448 shares in the company, valued at $583,157.76. The trade was a 11.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 31,378 shares of company stock worth $411,679. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ermenegildo Zegna

Large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC boosted its position in Ermenegildo Zegna by 48.3% in the first quarter. EverSource Wealth Advisors LLC now owns 2,788 shares of the company’s stock worth $29,000 after purchasing an additional 908 shares during the last quarter. California State Teachers Retirement System bought a new stake in shares of Ermenegildo Zegna during the 2nd quarter worth $33,000. Caitong International Asset Management Co. Ltd raised its stake in shares of Ermenegildo Zegna by 11,382.4% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,904 shares of the company’s stock worth $40,000 after purchasing an additional 3,870 shares during the period. Lazard Asset Management LLC purchased a new position in shares of Ermenegildo Zegna in the 2nd quarter worth about $54,000. Finally, Legal & General Group Plc purchased a new position in shares of Ermenegildo Zegna in the 2nd quarter worth about $59,000. Institutional investors own 12.91% of the company’s stock.

About Ermenegildo Zegna

Ermenegildo Zegna is a global luxury fashion house specializing in men’s tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.

Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.