Abercrombie & Fitch (NYSE:ANF) Shares Gap Down - Should You Sell?

Abercrombie & Fitch Co. (NYSE:ANF - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $83.39, but opened at $73.82. Abercrombie & Fitch shares last traded at $71.20, with a volume of 606,459 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts have commented on ANF shares. Morgan Stanley dropped their price objective on shares of Abercrombie & Fitch from $149.00 to $139.00 and set an "equal weight" rating for the company in a report on Wednesday, January 15th. Telsey Advisory Group dropped their price target on Abercrombie & Fitch from $190.00 to $125.00 and set an "outperform" rating for the company in a research note on Thursday, March 6th. JPMorgan Chase & Co. reduced their price objective on Abercrombie & Fitch from $189.00 to $168.00 and set an "overweight" rating on the stock in a research note on Wednesday, March 5th. Jefferies Financial Group lowered their target price on Abercrombie & Fitch from $220.00 to $170.00 and set a "buy" rating for the company in a research report on Wednesday, March 5th. Finally, Citigroup reduced their price target on shares of Abercrombie & Fitch from $160.00 to $135.00 and set a "buy" rating on the stock in a research report on Thursday, March 6th. Three investment analysts have rated the stock with a hold rating and six have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $140.88.

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Abercrombie & Fitch Price Performance

The company has a market capitalization of $3.31 billion, a P/E ratio of 6.67 and a beta of 1.41. The business has a 50-day moving average of $94.80 and a 200-day moving average of $126.87.

Abercrombie & Fitch (NYSE:ANF - Get Free Report) last posted its quarterly earnings data on Wednesday, March 5th. The apparel retailer reported $3.57 earnings per share for the quarter, topping analysts' consensus estimates of $3.48 by $0.09. Abercrombie & Fitch had a net margin of 11.16% and a return on equity of 46.50%. The company had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the company posted $2.97 EPS. The firm's revenue for the quarter was up 9.1% on a year-over-year basis. Sell-side analysts predict that Abercrombie & Fitch Co. will post 10.62 EPS for the current fiscal year.

Abercrombie & Fitch announced that its board has authorized a stock repurchase program on Wednesday, March 5th that allows the company to buyback $1.30 billion in shares. This buyback authorization allows the apparel retailer to purchase up to 29.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ANF. SBI Securities Co. Ltd. purchased a new stake in Abercrombie & Fitch in the 4th quarter valued at about $27,000. UMB Bank n.a. boosted its holdings in shares of Abercrombie & Fitch by 92.2% in the fourth quarter. UMB Bank n.a. now owns 223 shares of the apparel retailer's stock valued at $33,000 after purchasing an additional 107 shares during the period. Fifth Third Bancorp grew its stake in Abercrombie & Fitch by 56.2% in the fourth quarter. Fifth Third Bancorp now owns 367 shares of the apparel retailer's stock worth $55,000 after purchasing an additional 132 shares in the last quarter. Versant Capital Management Inc increased its holdings in Abercrombie & Fitch by 55.6% during the 1st quarter. Versant Capital Management Inc now owns 728 shares of the apparel retailer's stock worth $56,000 after purchasing an additional 260 shares during the period. Finally, Private Trust Co. NA raised its position in Abercrombie & Fitch by 30.9% during the 4th quarter. Private Trust Co. NA now owns 415 shares of the apparel retailer's stock valued at $62,000 after purchasing an additional 98 shares in the last quarter.

Abercrombie & Fitch Company Profile

Abercrombie & Fitch Co engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa.