Hennes & Mauritz (OTCMKTS:HNNMY) Hits New 1-Year Low – Time to Sell?

Hennes & Mauritz AB (OTCMKTS:HNNMY) reached a new 52-week low during trading on Thursday. The company traded as low as $3.22 and last traded at $3.23, with a volume of 101313 shares changing hands. The stock had previously closed at $3.31.

Key Headlines Impacting Hennes & Mauritz

Here are the key news stories impacting Hennes & Mauritz this week:

• Positive Sentiment: Third-quarter operating profit increased more than expected, helped by improved gross margins, cost savings and tariff-related benefits. EPS of $0.05 matched consensus, while revenue of $5.98 billion exceeded the $5.84 billion estimate. H&M’s operating profit grows more than expected in third quarter
• Positive Sentiment: Management’s cost-cutting program is beginning to support earnings, and summer collections were reportedly well received. Sales for June through August rose 1% in local currencies, slightly ahead of one analyst forecast. H&M Earnings Rise as Cost-Saving Push Pays Off
• Neutral Sentiment: Short interest rose 175.4% between August 31 and September 15 to 50,348 shares. However, short interest remains negligible at approximately 0.0% of shares outstanding, with a short-interest ratio of only 0.1 days, limiting the immediate significance.
• Negative Sentiment: September sales are expected to grow only 1% in local currencies, disappointing investors seeking stronger momentum. The modest outlook overshadowed the earnings beat and points to continued challenges in attracting customers and accelerating revenue growth. H&M Stock Slides Despite Earnings Beat on Sluggish Sales Growth
• Negative Sentiment: Barclays lowered its price target for H&M to SEK150, while Goldman Sachs maintained a Sell rating. These actions reinforce concerns that the current valuation may not be supported by the company’s subdued sales outlook. Barclays Lowers H&M Price Target

Analysts Set New Price Targets

HNNMY has been the subject of several research reports. Zacks Research raised shares of Hennes & Mauritz from a “strong sell” rating to a “hold” rating in a research report on Friday, August 14th. Pareto Securities lowered shares of Hennes & Mauritz to a “sell” rating in a report on Friday, June 26th. Finally, Citigroup reissued a “neutral” rating on shares of Hennes & Mauritz in a research note on Tuesday, August 18th. Four investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Reduce”.

Hennes & Mauritz Stock Down 0.9%

The business has a 50 day moving average of $3.53 and a two-hundred day moving average of $3.54. The stock has a market capitalization of $22.68 billion, a PE ratio of 19.00 and a beta of 1.12. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.53 and a current ratio of 1.07.

Hennes & Mauritz (OTCMKTS:HNNMY) last posted its earnings results on Wednesday, September 23rd. The company reported $0.05 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.05. The company had revenue of $5.98 billion for the quarter, compared to analyst estimates of $6.16 billion. Hennes & Mauritz had a return on equity of 33.62% and a net margin of 5.94%. Analysts predict that Hennes & Mauritz AB will post 0.17 EPS for the current year.

About Hennes & Mauritz

Hennes & Mauritz AB, commonly known as H&M, is a Sweden-based fashion retailer that sells clothing, accessories, footwear, beauty products and home furnishings. Its business spans design, sourcing, retail and online sales, with products aimed at women, men and children across a range of price points.

The company was founded in 1947 by Erling Persson as a women’s clothing store called Hennes in Västerås, Sweden. After acquiring the hunting and menswear retailer Mauritz Widforss in 1968, it adopted the Hennes & Mauritz name and expanded into menswear and children’s apparel.