Fossil Group Inc. (NASDAQ:FOSL): The Fundamentals Have Changed

Fossil Group Inc. (NASDAQ:FOSL) previous close was $13.29 while the outstanding shares total 51.30M. The firm has a beta of 2.04. FOSL’s shares traded lower over the last trading session, losing -27.35% on 12/14/20. The shares fell to a low of $9.64 before closing at $9.65. Intraday shares traded counted 6.34 million, which was -246.7% lower than its 30-day average trading volume of 1.83M. The stock’s Relative Strength Index (RSI) is 45.28, with weekly volatility at 13.14% and ATR at 1.10. The FOSL stock’s 52-week price range has touched low of $2.69 and a $13.43 high.

Investors have identified the Luxury Goods company Fossil Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $496.65 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Fossil Group Inc. (FOSL) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For FOSL, the company has in raw cash 323.56 million on their books with 21.43 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 1.01 billion total, with 549.9 million as their total liabilities.

FOSL were able to record 88.76 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 123.34 million. In cash movements, the company had a total of 95.86 million as operating cash flow.

Potential earnings growth for Fossil Group Inc. (FOSL)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Fossil Group Inc. recorded a total of 435.49 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -23.88% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 40.52%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 205.73 million trying to sell their products during the last quarter, with the result yielding a gross income of 229.77 million. This allows shareholders to hold on to 51.30M with the recently reported earning now reading 0.32 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (-1.50 cents a share).

Is the stock of FOSL attractive?

In related news, Chairman of the Board & CEO, KARTSOTIS KOSTA N sold 30,000 shares of the company’s stock in a transaction that recorded on Nov 19. The sale was performed at an average price of 11.85, for a total value of 355,500. As the sale deal closes, the Executive Vice President, Hart Darren E. now sold 82,477 shares of the company’s stock, valued at 800,852. Also, Executive Vice President, McKelvey Gregory A bought 30,000 shares of the company’s stock in a deal that was recorded on Jun 17. The shares were price at an average price of 5.00 per share, with a total market value of 150,000. Following this completion of acquisition, the Executive Vice President, McKelvey Gregory A now holds 120,000 shares of the company’s stock, valued at 717,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 8.40%.


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