Adidas (OTCMKTS:ADDYY) Shares Gap Down – Should You Sell?

Adidas AG (OTCMKTS:ADDYY) gapped down prior to trading on Monday . The stock had previously closed at $88.49, but opened at $84.15. Adidas shares last traded at $84.3265, with a volume of 6,868 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have commented on ADDYY. Santander initiated coverage on shares of Adidas in a research note on Thursday, January 15th. They issued an “outperform” rating for the company. Zacks Research raised Adidas from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Adidas in a research report on Tuesday, May 5th. Finally, Citigroup reaffirmed a “buy” rating on shares of Adidas in a research report on Tuesday, February 3rd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Adidas has an average rating of “Moderate Buy” and a consensus target price of $146.02.

Adidas Price Performance

The stock has a market cap of $29.79 billion, a P/E ratio of 18.36, a price-to-earnings-growth ratio of 1.22 and a beta of 1.22. The business’s 50-day simple moving average is $82.14 and its two-hundred day simple moving average is $90.19. The company has a quick ratio of 0.68, a current ratio of 1.32 and a debt-to-equity ratio of 0.33.

Adidas (OTCMKTS:ADDYY) last posted its earnings results on Wednesday, April 29th. The company reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.53 by $0.05. The firm had revenue of $7.71 billion for the quarter, compared to the consensus estimate of $7.36 billion. Adidas had a return on equity of 23.53% and a net margin of 5.52%. Sell-side analysts expect that Adidas AG will post 5.46 EPS for the current year.

Institutional Investors Weigh In On Adidas

A hedge fund recently raised its stake in Adidas stock. Madison Asset Management LLC lifted its stake in shares of Adidas AG (OTCMKTS:ADDYY) by 7.0% in the first quarter, according to its most recent filing with the SEC. The fund owned 24,125 shares of the company’s stock after acquiring an additional 1,582 shares during the period. Madison Asset Management LLC’s holdings in Adidas were worth $1,935,000 as of its most recent SEC filing.

About Adidas

Adidas AG is a global designer, manufacturer and marketer of athletic footwear, apparel and accessories, headquartered in Herzogenaurach, Germany. Founded by Adolf “Adi” Dassler in 1949, the company has grown into one of the world’s leading sportswear brands, offering products for running, soccer, basketball and a wide range of other sports as well as lifestyle and fashion markets.

Adidas’s product portfolio includes performance footwear, sports apparel, team uniforms, equipment and accessories sold under the Adidas brand and through various collaborations.