Signet Jewelers (NYSE:SIG) Shares Gap Up After Better-Than-Expected Earnings

Signet Jewelers Limited (NYSE:SIG - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $48.30, but opened at $58.53. Signet Jewelers shares last traded at $59.14, with a volume of 1,074,073 shares.

The company reported $6.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.39 by $0.23. Signet Jewelers had a return on equity of 28.69% and a net margin of 8.57%. The company had revenue of $2.35 billion for the quarter, compared to analysts' expectations of $2.33 billion. During the same period in the previous year, the firm posted $6.73 EPS. Signet Jewelers's revenue was down 5.8% compared to the same quarter last year.

Signet Jewelers Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 23rd. Investors of record on Friday, April 25th will be issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.19%. This is a boost from Signet Jewelers's previous quarterly dividend of $0.29. The ex-dividend date of this dividend is Friday, April 25th. Signet Jewelers's payout ratio is presently -168.42%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SIG. UBS Group raised their target price on shares of Signet Jewelers from $85.00 to $89.00 and gave the stock a "buy" rating in a research note on Thursday. Wells Fargo & Company decreased their target price on shares of Signet Jewelers from $95.00 to $80.00 and set an "overweight" rating on the stock in a research note on Thursday. Telsey Advisory Group reissued a "market perform" rating and issued a $55.00 target price on shares of Signet Jewelers in a research note on Wednesday. StockNews.com lowered shares of Signet Jewelers from a "buy" rating to a "hold" rating in a research note on Friday, December 6th. Finally, Bank of America decreased their target price on shares of Signet Jewelers from $95.00 to $65.00 and set a "neutral" rating on the stock in a research note on Wednesday, January 15th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $81.60.

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Insider Activity

In other news, Director Eugenia Ulasewicz sold 3,333 shares of Signet Jewelers stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $54.13, for a total transaction of $180,415.29. Following the sale, the director now owns 22,752 shares of the company's stock, valued at approximately $1,231,565.76. The trade was a 12.78 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 3.26% of the company's stock.

Institutional Trading of Signet Jewelers

Institutional investors have recently made changes to their positions in the company. Smartleaf Asset Management LLC raised its position in shares of Signet Jewelers by 149.3% during the 4th quarter. Smartleaf Asset Management LLC now owns 703 shares of the company's stock valued at $57,000 after buying an additional 421 shares during the period. Erste Asset Management GmbH purchased a new stake in Signet Jewelers in the third quarter valued at approximately $77,000. Sterling Capital Management LLC raised its position in Signet Jewelers by 832.9% in the fourth quarter. Sterling Capital Management LLC now owns 1,362 shares of the company's stock valued at $110,000 after purchasing an additional 1,216 shares during the period. CIBC Private Wealth Group LLC raised its position in Signet Jewelers by 32.9% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,656 shares of the company's stock valued at $123,000 after purchasing an additional 410 shares during the period. Finally, KBC Group NV raised its position in Signet Jewelers by 34.6% in the fourth quarter. KBC Group NV now owns 1,740 shares of the company's stock valued at $140,000 after purchasing an additional 447 shares during the period.

Signet Jewelers Trading Up 3.8 %

The company has a market cap of $2.54 billion, a PE ratio of 6.73, a price-to-earnings-growth ratio of 3.43 and a beta of 2.20. The company has a quick ratio of 0.25, a current ratio of 1.55 and a debt-to-equity ratio of 0.14. The business has a 50-day simple moving average of $54.52 and a 200-day simple moving average of $78.29.

About Signet Jewelers

Signet Jewelers Limited operates as a diamond jewelry retailer. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in jewelry stores in malls, mall-based kiosks, and off-mall locations in the United States and Canada primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Outlet, Zales Jewelers, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through its digital banners, James Allen and Blue Nile.