Hhgregg Inc. (NYSE:HGG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Estimates have increased slightly over the past 60 days period after hhgregg reported narrower-than-expected loss in the first quarter of fiscal 2017. We note that hhgregg has been reporting losses and declining revenues for the past many quarters, primarily due to weak comparable store sales. Nevertheless, we are encouraged by hhgregg’s strategic initiatives and its savings and revenue initiatives, which focus on stabilizing the business by reversing the negative sales trends, optimizing marketing spending and improving cost structure. These initiatives have generated positive EBITDA results since the past one year and are expected to continue the trend in the near term as well. The company is also backing on its appliance category and has plans to expand its Fine Lines store program to boost sales. However, we believe that any sort of improvement will take time as the company is under a lot of pressure and facing volatility.”
Hhgregg (NYSE:HGG) opened at 1.82 on Wednesday. The stock has a 50 day moving average of $1.95 and a 200 day moving average of $1.88. Hhgregg has a one year low of $1.46 and a one year high of $5.84. The firm’s market cap is $50.59 million.
Hhgregg (NYSE:HGG) last announced its quarterly earnings results on Thursday, August 4th. The company reported ($0.21) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.31) by $0.10. The firm had revenue of $423.57 million for the quarter, compared to analysts’ expectations of $416.45 million. Hhgregg had a negative net margin of 2.75% and a negative return on equity of 21.66%. Hhgregg’s revenue was down 4.0% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.17) earnings per share. On average, equities analysts forecast that Hhgregg will post ($1.10) earnings per share for the current year.
Several hedge funds have recently bought and sold shares of the stock. Renaissance Technologies LLC raised its stake in Hhgregg by 23.1% in the first quarter. Renaissance Technologies LLC now owns 712,300 shares of the company’s stock worth $1,503,000 after buying an additional 133,700 shares in the last quarter. Stifel Financial Corp raised its stake in Hhgregg by 99.5% in the second quarter. Stifel Financial Corp now owns 441,000 shares of the company’s stock worth $781,000 after buying an additional 220,000 shares in the last quarter. Finally, Spark Investment Management LLC raised its stake in Hhgregg by 280.7% in the first quarter. Spark Investment Management LLC now owns 344,700 shares of the company’s stock worth $727,000 after buying an additional 254,148 shares in the last quarter. Institutional investors own 65.61% of the company’s stock.
Hhgregg Company Profile
hhgregg, Inc (hhgregg) is an appliance, electronics and furniture retailer. The Company operates as a multi-regional retailer with approximately 230 brick-and-mortar stores in 20 states that also offer global and local brands across the nation through hhgregg.com. It also sells a suite of services, including third-party premium service plans (PSPs), third-party in-home service and repair of its products, delivery and installation, and in-home repair and maintenance.
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