Citi Trends Upgraded to “Buy” Amid Analyst Ratings Changes

Citi Trends (NASDAQ:CTRN) has received an upgrade from a “hold” to a “buy” rating, according to a report released by Wall Street Zen on Sunday. This positive shift follows a series of evaluations from various brokerages, indicating a growing confidence in the company’s potential.

In a separate research note, DA Davidson set a price target of $43.00 for Citi Trends, affirming a “buy” rating. Conversely, Weiss Ratings reiterated a “sell (d-)” rating on October 8, reflecting a more cautious stance. Overall, two analysts currently rate the stock as a buy, while one has assigned a sell rating. Data from MarketBeat indicates that Citi Trends maintains an average rating of “hold” with a target price of $39.50.

Recent Performance and Market Analysis

As of Friday, shares of Citi Trends opened at $45.76, marking a 2.0% increase. The company boasts a market capitalization of approximately $380.27 million, with a price-to-earnings (P/E) ratio of -22.88 and a beta of 2.16, reflecting its volatility in the market. Over the past year, Citi Trends has seen a low of $16.82 and a high of $49.50.

The retailer’s recent quarterly earnings report, released on December 2, showed a loss of ($0.88) earnings per share, which fell short of the consensus estimate of ($0.79) by ($0.09). Despite this, the company’s revenue for the quarter reached $197.09 million, surpassing analyst expectations of $187.33 million. Citi Trends has faced challenges, with a negative return on equity of 22.64% and a net margin of -2.05%.

Institutional Investment Activity

Recent activity among institutional investors suggests a strategic shift in holdings related to Citi Trends. Jacobs Levy Equity Management Inc. acquired a new position in the company during the third quarter, investing approximately $2,778,000. XTX Topco Ltd increased its stake by 22.4%, now owning 19,825 shares valued at $615,000 after purchasing an additional 3,628 shares.

Additionally, Susquehanna International Group LLP raised its position by 147.4%, acquiring 41,905 shares worth $1,300,000. Qube Research & Technologies Ltd expanded its holdings by 124.0% during the same quarter, owning 98,909 shares valued at $3,069,000. The Public Employees Retirement System of Ohio also entered the market, purchasing a new stake worth approximately $273,000.

Citi Trends operates as a value retailer, providing a variety of fashion apparel, accessories, and home goods. The company offers products ranging from sportswear and footwear to children’s clothing and home essentials, catering to a diverse customer base. As analysts continue to evaluate the company’s potential, investor interest remains a key focus for future developments.