Ollie’s Bargain Outlet (NASDAQ:OLLI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Thursday.
According to Zacks, “Shares of Ollie's Bargain have surged and outpaced the industry in the past six months. The company’s business model of “buying cheap and selling cheap”, cost-containment efforts, focus on store productivity, sturdy comps performance and expansion of customer reward program fortify its position. Further, the company has been making concerted efforts to lower debt burden and expects to be debt free by the end of fiscal 2018. Cumulatively, these have not only positioned the stock to augment both top and bottom-line performance in the long run but also continue with better-than-expected performance. This is quite evident from first-quarter results following which the company raised fiscal 2018 view. However, management cautioned about likely increase in supply chain costs and deleverage in SG&A expenses that may weigh upon margins. Apart from this, the company may also face higher freight and fuel cost related challenges.”
A number of other brokerages also recently issued reports on OLLI. Piper Jaffray Companies restated an “overweight” rating and issued a $99.00 price target on shares of Ollie’s Bargain Outlet in a research report on Tuesday. BidaskClub upgraded shares of Ollie’s Bargain Outlet from a “buy” rating to a “strong-buy” rating in a research report on Thursday, August 23rd. Bank of America downgraded shares of Ollie’s Bargain Outlet from a “neutral” rating to an “underperform” rating and dropped their price target for the stock from $75.50 to $68.00 in a research report on Friday, June 22nd. Loop Capital assumed coverage on shares of Ollie’s Bargain Outlet in a research report on Monday, June 18th. They issued a “hold” rating and a $75.00 price target on the stock. Finally, Morgan Stanley boosted their price target on shares of Ollie’s Bargain Outlet from $58.00 to $63.00 and gave the stock a “hold” rating in a research report on Wednesday, June 6th. Seven analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company. Ollie’s Bargain Outlet has a consensus rating of “Buy” and a consensus target price of $71.56.
NASDAQ:OLLI traded up $0.60 during mid-day trading on Thursday, hitting $84.80. 4,656 shares of the company’s stock were exchanged, compared to its average volume of 552,097. The company has a debt-to-equity ratio of 0.02, a current ratio of 2.18 and a quick ratio of 0.25. Ollie’s Bargain Outlet has a fifty-two week low of $41.31 and a fifty-two week high of $84.35. The company has a market cap of $5.06 billion, a PE ratio of 67.72, a P/E/G ratio of 2.04 and a beta of 0.11.
Ollie’s Bargain Outlet (NASDAQ:OLLI) last posted its earnings results on Tuesday, June 5th. The company reported $0.41 EPS for the quarter, topping the consensus estimate of $0.37 by $0.04. The business had revenue of $275.70 million for the quarter, compared to the consensus estimate of $267.27 million. Ollie’s Bargain Outlet had a net margin of 12.36% and a return on equity of 12.06%. The firm’s revenue was up 21.1% compared to the same quarter last year. During the same period last year, the company earned $0.25 EPS. equities research analysts expect that Ollie’s Bargain Outlet will post 1.73 EPS for the current year.
In other news, CEO Mark L. Butler sold 375,000 shares of Ollie’s Bargain Outlet stock in a transaction on Wednesday, June 20th. The shares were sold at an average price of $74.90, for a total value of $28,087,500.00. Following the completion of the sale, the chief executive officer now owns 3,678,372 shares in the company, valued at approximately $275,510,062.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Kenneth Robert Bertram sold 6,750 shares of Ollie’s Bargain Outlet stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $78.99, for a total transaction of $533,182.50. Following the completion of the sale, the vice president now owns 17,217 shares of the company’s stock, valued at approximately $1,359,970.83. The disclosure for this sale can be found here. Insiders sold a total of 1,945,490 shares of company stock valued at $139,949,925 in the last quarter. 20.27% of the stock is currently owned by company insiders.
Hedge funds have recently made changes to their positions in the business. Fred Alger Management Inc. increased its stake in Ollie’s Bargain Outlet by 15.9% during the 2nd quarter. Fred Alger Management Inc. now owns 838,382 shares of the company’s stock valued at $60,783,000 after purchasing an additional 114,899 shares in the last quarter. Retirement Systems of Alabama bought a new stake in Ollie’s Bargain Outlet during the 2nd quarter valued at $4,683,000. Campbell & CO Investment Adviser LLC bought a new stake in Ollie’s Bargain Outlet during the 2nd quarter valued at $609,000. Mitsubishi UFJ Asset Management UK Ltd. bought a new stake in Ollie’s Bargain Outlet during the 2nd quarter valued at $1,160,000. Finally, Amalgamated Bank increased its stake in Ollie’s Bargain Outlet by 18.2% during the 2nd quarter. Amalgamated Bank now owns 8,108 shares of the company’s stock valued at $588,000 after purchasing an additional 1,251 shares in the last quarter. Institutional investors and hedge funds own 89.04% of the company’s stock.
About Ollie’s Bargain Outlet
Ollie's Bargain Outlet Holdings, Inc operates as a retailer of brand name merchandise. The company offers food products, housewares, books and stationery, bed and bath products, floor coverings, electronics, and toys; and other products, including hardware, personal health care, candy, clothing, sporting, pet and lawn, and garden products.
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