Wall Street Analyst Downgrade Chico’s FAS Inc. [CHS]. What else is Wall St. saying

Chico’s FAS Inc. [NYSE: CHS] loss -3.32% or -0.16 points to close at $4.66 with a heavy trading volume of 3771116 shares. The company report on January 9, 2023 that Chico’s FAS, Inc. Reports Holiday Sales and Updates Fourth Quarter Outlook.

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Chico’s FAS, Inc. (NYSE: CHS) (the “Company” or Chico’s FAS) today reported holiday sales and updated its outlook for fiscal 2022 fourth quarter sales and earnings. Molly Langenstein, Chico’s FAS Chief Executive Officer and President, and Patrick (“PJ”) Guido, Chico’s FAS Chief Financial Officer, will discuss continued progress on the Company’s strategic plan and these results at the ICR Conference today at 8:00 a.m. ET. As previously announced, a live webcast and associated replay will available at https://wsw.com/webcast/icr8/chs/1463316 and on the Investor Relations section of the Company’s website at www.chicosfas.com, respectively.

Langenstein commented, “Our customer led, product obsessed, digital first, operationally excellent strategy is working. Our brand portfolio continues to deliver strong results and we are confident in our strategic direction as we close out an exceptional year for our company. For the nine-week holiday period ending December 31, 2022, total net sales grew 4.9% over last year and comparable sales grew 5.3% over last year.  Chico’s sales remained healthy, and sales trends at Soma continued to improve quarter over quarter.  As we entered December, White House Black Market sales softened as we had sold through newer assortments and were left with leaner inventories and styles that did not match up with customer demand.  We are on track to post low-to-mid-single-digit total Company comparable sales growth for the fourth quarter on top of 29% comparable sales growth in last year’s fourth quarter.”.

It opened the trading session at $4.81, the shares rose to $4.84 and dropped to $4.56, the range by which the price of stock traded the whole day. The daily chart for CHS points out that the company has recorded -6.05% loss over the past six months. However, it is still -22.63% lower than its most recent low trading price.

If we look at the average trading volume of 2.28M shares, CHS reached to a volume of 3771116 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Chico’s FAS Inc. [CHS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CHS shares is $7.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CHS stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

B. Riley Securities have made an estimate for Chico’s FAS Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 17, 2020. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price from $3 to $5. The new note on the price target was released on November 27, 2019, representing the official price target for Chico’s FAS Inc. stock. Previously, the target price had yet another drop from $4 to $3, while Telsey Advisory Group kept a Market Perform rating on CHS stock. On June 12, 2019, analysts decreased their price target for CHS shares from 5 to 4.

The Average True Range (ATR) for Chico’s FAS Inc. is set at 0.30, with the Price to Sales ratio for CHS stock in the period of the last 12 months amounting to 0.26. The Price to Book ratio for the last quarter was 1.73, with the Price to Cash per share for the same quarter was set at 1.21. Price to Free Cash Flow for CHS in the course of the last twelve months was 9.07 with Quick ratio for the last quarter at 0.50.

Trading performance analysis for CHS stock

Chico’s FAS Inc. [CHS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.51. With this latest performance, CHS shares dropped by -22.59% in over the last four-week period, additionally sinking by -6.05% over the last 6 months – not to mention a drop of -4.51% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CHS stock in for the last two-week period is set at 38.93, with the RSI for the last a single of trading hit 37.85, and the three-weeks RSI is set at 40.51 for Chico’s FAS Inc. [CHS]. The present Moving Average for the last 50 days of trading for this stock 5.70, while it was recorded at 4.89 for the last single week of trading, and 5.38 for the last 200 days.

Chico’s FAS Inc. [CHS]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Chico’s FAS Inc. [CHS] shares currently have an operating margin of +3.84 and a Gross Margin at +36.69. Chico’s FAS Inc.’s Net Margin is presently recorded at +2.53.

Return on Equity for this stock inclined to 23.71, with Return on Assets sitting at 3.71.

Chico’s FAS Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 1.20.

Chico’s FAS Inc. [CHS]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CHS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Chico’s FAS Inc. go to 10.00%.

An analysis of insider ownership at Chico’s FAS Inc. [CHS]

There are presently around $519 million, or 90.30% of CHS stock, in the hands of institutional investors. The top three institutional holders of CHS stocks are: BLACKROCK INC. with ownership of 20,334,520, which is approximately 0.794% of the company’s market cap and around 2.80% of the total institutional ownership; VANGUARD GROUP INC, holding 9,151,107 shares of the stock with an approximate value of $42.64 million in CHS stocks shares; and MARSHALL WACE, LLP, currently with $26.74 million in CHS stock with ownership of nearly -2.763% of the company’s market capitalization.

Positions in Chico’s FAS Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 124 institutional holders increased their position in Chico’s FAS Inc. [NYSE:CHS] by around 12,605,283 shares. Additionally, 76 investors decreased positions by around 8,967,723 shares, while 39 investors held positions by with 89,758,617 shares. The mentioned changes placed institutional holdings at 111,331,623 shares, according to the latest SEC report filing. CHS stock had 43 new institutional investments in for a total of 4,055,668 shares, while 10 institutional investors sold positions of 3,686,015 shares during the same period.


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