Investing action plan for Caleres Inc. (CAL) And Thor Industries Inc. (THO)

Caleres Inc. (NYSE: CAL) shares are -63.16% down in the year-to-date (YTD) period and have moved 12.04% or $0.94 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +180.45% lower. Comparatively, the stock is -63.51% down YTD and 2.46% over the trailing 3-month period. If we look at the shorter duration, its week performance is 27.00% and 42.74% over the month.

Analyst Recommendations

On June 08, 2020, Susquehanna recommended the CAL stock is a Negative, while earlier, Susquehanna had Upgrade the stock as a Positive on July 10, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.60 to suggest that the CAL stock is a “Moderate Buy. 0 of the 5 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $8.75 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $11.33. The forecasts give the Caleres Inc. stock a price target range of $15.00 on the higher side while at least one analyst think the stock could plunge to a low of $7.00. The two limits represent an upside potential of 41.67% or -25.0%.

Earnings Forecast

Analysts estimate the earnings to increase 44.10% in the current quarter to $0.21, down from the $0.78 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.09, down -29.10% from $2.1 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.22 and $0.26. Wall Street estimates earnings per share to be at an average of $1.46 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 22 over the last 12 months, while SEC filings reveal that there have been 25 insider sales over the same period. Insiders have purchases 324,459 shares while those sold by company executives and officers stand at 112,783. The last 3 months have seen insiders trade a total of 12,748 and 5,387 in purchases and sales respectively.

Korn Steven W, a Director at the company, bought 5,000 shares worth $20801.0 at $4.16 per share on Mar 17. The Director had earlier bought another 1,500 CAL shares valued at $7543.0 on Mar 24. The shares were bought at $5.03 per share.

Thor Industries Inc. (NYSE:THO), on the other hand, is trading around $95.06 with a market cap of $5.32B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $117.88 and spell out a more modest performance – a 19.36% return. Some analysts are even forecasting $3.3 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Thor Industries Inc. (THO) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

THO’s operating margin was positive on the trailing 12 months basis, remaining steady at 2.90%, while the operating expenses over the recent quarter were at $152.33 million. This represented a 90.94% of the company’s total revenues which amounted $1.68 billion. With this in place, we can see that the company’s diluted EPS inclined $0.43 on the year-over-year period, growing to $0.59 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jul 2020), the total assets figure advanced to $5.61 billion from $5.63 billion over the previous quarter. The cash flow from operating activities totaled $237.27 million, significantly higher than the $175.8 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $237.27 million.

Insider activity

Insiders have transacted a total of 4 times at Thor Industries Inc. over the last 6 months, with insider purchases undertaken 2 times and accounting for 2,800 shares. Insider sales totaled 35,400 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are 0.0 shares. Insiders now hold a total of 2.24M shares after the latest sales, with 1.70% net shares purchased.

Major holders

Insiders own 1.70% of the company shares, while shares held by institutions stand at 97.60% with a share float percentage of 52.99M. Investors are also buoyed by the number of investors in a company, with Thor Industries Inc. having a total of 474 institutions that hold shares in the company. The top two institutional holders are Capital Research Global Investors with over 6.44 million shares worth more than $685.98 million. As of Jun 29, 2020, Capital Research Global Investors held 11.67% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 4.82 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $513.91 million and represent 8.74% of shares outstanding.