Needham analyst Tom Nikic has maintained their neutral stance on SHOO stock, giving a Hold rating today.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Tom Nikic has given his Hold rating due to a combination of factors surrounding Steven Madden’s recent acquisition of Kurt Geiger. The acquisition is valued at approximately $300 million USD, which is less than one times the sales of the acquired company, indicating a favorable purchase price. Kurt Geiger has shown significant growth and aligns well with Steven Madden’s strategic focus areas, such as accessories, direct-to-consumer sales, and international markets.
Despite these positives, Tom Nikic expresses some caution due to questions about why the private-equity owners decided to sell Kurt Geiger despite its strong performance. Additionally, Kurt Geiger’s higher price point compared to Steven Madden’s core brand suggests a potential shift in market positioning and target demographics. These mixed factors contribute to the Hold rating, reflecting a wait-and-see approach to how the acquisition will ultimately impact Steven Madden’s overall performance.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $44.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SHOO in relation to earlier this year.