Oxford Industries Shares Decline: Analysts Revise Ratings

Shares of Oxford Industries, Inc. (NYSE: OXM) experienced a significant decline in early trading on Monday, gapping down from a previous close of $36.02 to open at $34.00. As of the latest trading session, the stock was valued at $34.91, with a trading volume of 63,356 shares.

Analyst Ratings Shift Following Earnings Report

The drop in share price follows a series of revisions from multiple research analysts. Telsey Advisory Group lowered its target price on Oxford Industries from $52.00 to $35.00 and maintained a “market perform” rating in a report dated December 11, 2023. Similarly, Zacks Research downgraded the stock from a “hold” to a “strong sell” rating the following day.

Other analysts have also adjusted their forecasts. Citigroup decreased its target price from $35.00 to $33.00, retaining a “neutral” rating, while UBS Group increased its target from $35.00 to $36.00 but also kept a “neutral” rating. Overall, five analysts currently rate the stock as a hold and two have given it a sell rating. According to data from MarketBeat, the stock holds an average rating of “reduce” with a target price of $43.80.

Quarterly Earnings Overview and Future Guidance

On December 10, 2023, Oxford Industries reported its quarterly earnings, disclosing an earnings per share (EPS) of ($0.92), surpassing the consensus estimate of ($0.95) by $0.03. The company recorded revenues of $307.34 million, slightly exceeding analyst estimates of $304.42 million. Despite this, the company’s revenue saw a decline of 0.2% compared to the same quarter in the preceding year.

Looking ahead, Oxford Industries has projected its fiscal year 2025 guidance to be between ($1.540) and ($1.320) per share. For the fourth quarter of 2025, the anticipated EPS is forecasted between $0.000 and $0.200.

The company’s dividend strategy remains attractive. A quarterly dividend of $0.69 per share has been declared, set to be paid on January 30, 2024, to shareholders of record as of January 16, 2024. This dividend indicates an annualized yield of 7.2%, although the dividend payout ratio stands at a concerning -836.36%.

Insider Activity and Institutional Investments

In a notable insider transaction, CEO Thomas Caldecot Chubb III acquired 5,000 shares of the company on December 12, 2023, at an average price of $35.12 per share, totaling $175,600. Following this transaction, Chubb’s total ownership in the company increased to 22,709 shares, valued at $797,540.08. Currently, corporate insiders hold 6.00% of the stock.

Institutional investors have also been active, with several hedge funds adjusting their positions in Oxford Industries. AQR Capital Management LLC raised its holdings by 33.9%, now owning 6,495 shares, while MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position by 4.6%. Other significant increases include a 311.9% rise in holdings by Millennium Management LLC, which now controls 293,384 shares valued at $17.2 million.

Overall, institutional investors currently hold 91.16% of Oxford Industries’ stock, reflecting strong interest from large investment entities.

Founded in 1942 and headquartered in Atlanta, Georgia, Oxford Industries is a prominent designer and distributor of high-quality lifestyle apparel and accessories, featuring well-known brands such as Tommy Bahama and Southern Tide. The company continues to navigate a challenging market environment as it seeks to stabilize its performance amid fluctuating analyst sentiments and market pressures.