Levi Strauss & Co. (NYSE:LEVI) Shares Gap Up After Better-Than-Expected Earnings

Shares of Levi Strauss & Co. (NYSE:LEVI) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $13.50, but opened at $15.71. Levi Strauss & Co. shares last traded at $13.72, with a volume of 1,974,722 shares changing hands.

The blue-jean maker reported $0.38 EPS for the quarter, beating the consensus estimate of $0.28 by $0.10. Levi Strauss & Co. had a return on equity of 25.88% and a net margin of 3.32%. The firm had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.54 billion. During the same quarter in the prior year, the firm posted $0.26 EPS. The company’s revenue for the quarter was up 3.1% on a year-over-year basis.

Levi Strauss & Co. Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, February 28th. Investors of record on Wednesday, February 12th were given a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 3.81%. The ex-dividend date of this dividend was Wednesday, February 12th. Levi Strauss & Co.’s dividend payout ratio (DPR) is presently 58.43%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. JPMorgan Chase & Co. upgraded Levi Strauss & Co. from a “neutral” rating to an “overweight” rating and dropped their price objective for the stock from $19.00 to $17.00 in a research note on Tuesday. Guggenheim boosted their price target on shares of Levi Strauss & Co. from $20.00 to $22.00 and gave the company a “buy” rating in a research report on Monday, February 3rd. Barclays cut their target price on shares of Levi Strauss & Co. from $24.00 to $22.00 and set an “overweight” rating for the company in a research note on Thursday, January 30th. Morgan Stanley dropped their price target on Levi Strauss & Co. from $18.00 to $17.00 and set an “equal weight” rating for the company in a report on Thursday, January 30th. Finally, Wells Fargo & Company reduced their target price on shares of Levi Strauss & Co. from $20.00 to $17.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 30th. Four research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $20.27.

Insider Activity

In other news, Director David A. Friedman sold 4,166 shares of the firm’s stock in a transaction that occurred on Monday, February 3rd. The shares were sold at an average price of $18.44, for a total transaction of $76,821.04. Following the completion of the transaction, the director now directly owns 100,012 shares of the company’s stock, valued at $1,844,221.28. This trade represents a 4.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 1.25% of the company’s stock.

Institutional Trading of Levi Strauss & Co.

A number of institutional investors have recently made changes to their positions in LEVI. Charles Schwab Investment Management Inc. boosted its stake in shares of Levi Strauss & Co. by 19.2% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 946,998 shares of the blue-jean maker’s stock worth $16,383,000 after buying an additional 152,590 shares during the last quarter. XTX Topco Ltd acquired a new stake in shares of Levi Strauss & Co. in the 3rd quarter valued at approximately $832,000. Entropy Technologies LP acquired a new position in Levi Strauss & Co. during the fourth quarter worth $511,000. Y Intercept Hong Kong Ltd acquired a new position in Levi Strauss & Co. during the fourth quarter worth $1,415,000. Finally, American Century Companies Inc. raised its position in Levi Strauss & Co. by 15.8% during the fourth quarter. American Century Companies Inc. now owns 1,608,253 shares of the blue-jean maker’s stock worth $27,823,000 after acquiring an additional 219,546 shares in the last quarter. Institutional investors own 69.14% of the company’s stock.

Levi Strauss & Co. Trading Up 1.1 %

The business’s 50 day simple moving average is $17.11 and its 200 day simple moving average is $17.64. The stock has a market cap of $5.40 billion, a price-to-earnings ratio of 26.26, a PEG ratio of 1.92 and a beta of 1.07. The company has a quick ratio of 0.80, a current ratio of 1.42 and a debt-to-equity ratio of 0.50.

Levi Strauss & Co. Company Profile

Levi Strauss & Co engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.