Abercrombie & Fitch (NYSE: ANF) received a positive outlook from analysts at JPMorgan Chase & Co., which increased its target price for the apparel retailer from $92.00 to $109.00. This adjustment, detailed in a research report issued on October 25, 2023, suggests a potential upside of 14.78% from the company’s last closing price. JPMorgan currently holds a “neutral” rating on Abercrombie & Fitch’s stock, reflecting cautious optimism.
Other financial institutions have also weighed in on the company’s prospects. Raymond James Financial set a price target of $105.00 with an “outperform” rating on August 28, 2023. Similarly, UBS Group raised its price objective from $125.00 to $130.00, assigning a “buy” rating. In contrast, Zacks Research downgraded the stock from a “hold” to a “strong sell” rating on October 27, 2023. According to MarketBeat, the consensus rating for Abercrombie & Fitch is “hold,” with an average price target of $105.00.
Financial Performance and Forecast
Abercrombie & Fitch recently reported its quarterly earnings on November 25, 2023, revealing earnings per share of $2.36, surpassing analysts’ expectations of $2.14 by $0.22. The company achieved a net margin of 10.61% and a return on equity of 40.02%. Revenue for the quarter reached $1.29 billion, slightly above analysts’ predictions of $1.28 billion. This marks a year-over-year revenue increase of 6.8%.
Looking ahead, Abercrombie & Fitch has provided guidance for its fourth quarter of 2025, predicting earnings per share between $3.40 and $3.70. For the full fiscal year, the guidance ranges from $10.20 to $10.50 per share. Analysts anticipate an average EPS of $10.62 for the current year.
Insider Activity and Institutional Investments
In related news, insider trading activity has been notable. Director Kenneth B. Robinson sold 1,392 shares on September 5, 2023, at an average price of $94.60, totaling approximately $131,683.20. Following this transaction, Robinson’s ownership decreased by 19.14%. Similarly, Director James A. Goldman sold 5,072 shares on August 29, 2023, for a total of about $487,824.96, reducing his stake by 40.14%. Over the past 90 days, insiders have sold a total of 7,964 shares valued at $759,233, with insiders currently holding 2.29% of the company’s stock.
Institutional investors have also adjusted their positions in Abercrombie & Fitch. NewEdge Advisors LLC increased its holdings by 181.6% in the second quarter, owning 352 shares valued at $29,000. Blue Trust Inc. and Ameritas Advisory Services LLC both entered new positions valued at approximately $38,000. Furthermore, Hantz Financial Services Inc. and Bessemer Group Inc. significantly boosted their holdings, with increases of 108.2% and 268.0%, respectively.
Abercrombie & Fitch continues to navigate a dynamic retail environment, with its stock performance reflecting broader market trends and consumer preferences. As the company prepares for the upcoming quarters, analysts and investors will be closely monitoring its financial health and strategic initiatives.
