Michaels Companies (NASDAQ:MIK) Shares Gap Down on Disappointing Earnings

Michaels Companies Inc (NASDAQ:MIK) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $8.23, but opened at $7.22. Michaels Companies shares last traded at $6.08, with a volume of 10,146,827 shares trading hands.

The specialty retailer reported $0.40 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.49 by ($0.09). Michaels Companies had a negative return on equity of 23.40% and a net margin of 6.31%. The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the prior year, the business earned $0.48 EPS. The firm’s quarterly revenue was down 4.1% on a year-over-year basis.

Several equities research analysts have issued reports on the company. JPMorgan Chase & Co. cut their target price on Michaels Companies from $9.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, September 5th. BidaskClub lowered Michaels Companies from a “hold” rating to a “sell” rating in a research note on Thursday, November 21st. Morgan Stanley set a $7.00 price target on Michaels Companies and gave the stock a “hold” rating in a report on Monday, September 9th. ValuEngine downgraded Michaels Companies from a “hold” rating to a “sell” rating in a research report on Friday, November 1st. Finally, Wells Fargo & Co set a $6.00 price objective on shares of Michaels Companies and gave the company a “hold” rating in a report on Wednesday, September 4th. Four equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and one has assigned a buy rating to the stock. Michaels Companies currently has an average rating of “Hold” and a consensus price target of $8.73.

In other news, Director Beryl Raff purchased 6,700 shares of the firm’s stock in a transaction on Friday, September 6th. The shares were bought at an average cost of $7.47 per share, for a total transaction of $50,049.00. Following the completion of the purchase, the director now directly owns 30,993 shares of the company’s stock, valued at $231,517.71. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.51% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MIK. Meeder Asset Management Inc. increased its stake in Michaels Companies by 1,946.6% during the third quarter. Meeder Asset Management Inc. now owns 5,669 shares of the specialty retailer’s stock worth $55,000 after purchasing an additional 5,392 shares during the period. Bank of Montreal Can lifted its holdings in Michaels Companies by 54.8% during the 2nd quarter. Bank of Montreal Can now owns 9,022 shares of the specialty retailer’s stock worth $78,000 after buying an additional 3,194 shares in the last quarter. Campbell & CO Investment Adviser LLC acquired a new stake in Michaels Companies during the 3rd quarter worth approximately $120,000. CLARET ASSET MANAGEMENT Corp purchased a new position in Michaels Companies in the 3rd quarter valued at approximately $129,000. Finally, Qube Research & Technologies Ltd purchased a new position in Michaels Companies in the 2nd quarter valued at approximately $132,000.

The company’s 50 day simple moving average is $8.91 and its 200 day simple moving average is $8.29. The firm has a market cap of $1.12 billion, a price-to-earnings ratio of 2.59, a P/E/G ratio of 0.64 and a beta of 1.05.

About Michaels Companies (NASDAQ:MIK)

The Michaels Companies, Inc owns and operates arts and crafts specialty retail stores for Makers and do-it-yourself home decorators in North America. It operates Michaels stores that offer approximately 45,000 stock-keeping units (SKUs) in crafts, home decor and seasonal, framing, and paper crafting; and Aaron Brothers stores, which offer approximately 5,600 SKUs, including photo frames, a line of ready-made frames, art prints, framed art, art supplies, and custom framing services.

Featured Story: Cost of Equity

Receive News & Ratings for Michaels Companies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Michaels Companies and related companies with MarketBeat.com's FREE daily email newsletter.