Savers Value Village Stock Downgraded Amid Mixed Analyst Ratings

Investment analysts at Wall Street Zen have downgraded the stock rating of Savers Value Village (NYSE:SVV) from “buy” to “hold.” This change was outlined in a research report distributed to clients and investors on Saturday, indicating a more cautious outlook for the company.

In a series of recent assessments, other analysts have also revised their ratings. On October 24, 2023, Weiss Ratings upgraded Savers Value Village from a “sell (d+)” to a “hold (c-)” rating. Meanwhile, Piper Sandler increased their price target for the stock from $11.00 to $12.00 while assigning a “neutral” rating on August 1, 2023. Additionally, UBS Group raised its target price from $13.00 to $16.00 and maintained a “buy” rating as of October 31, 2023. Similarly, JPMorgan Chase & Co. adjusted their target from $9.00 to $11.00, also categorizing the stock as “neutral” on July 28, 2023.

Currently, analysts have mixed opinions on Savers Value Village. One has issued a Strong Buy rating, four have given a Buy rating, three assigned a Hold rating, and one has rated the stock as a Sell. According to data from MarketBeat, the stock holds a consensus rating of “Moderate Buy” with an average price target of $13.67.

Recent Financial Performance

Savers Value Village released its quarterly earnings results on January 15, 2024, reporting an earnings per share (EPS) of $0.18 for the period. The company generated revenue of $394.80 million, reflecting a positive return on equity of 9.18%. However, it also recorded a net margin of -0.11%. Analysts project that Savers Value Village will achieve an EPS of $0.28 for the current fiscal year.

Insider Trading Activities

In related news, there have been notable transactions involving company insiders. General Counsel Richard A. Medway sold 20,000 shares of Savers Value Village on September 26, 2023, at an average price of $13.69, amounting to a total value of $273,800. Additionally, CEO Mark T. Walsh sold 34,184 shares on September 24, 2023, at an average price of $13.08, resulting in a total transaction value of approximately $447,126.72. Over the past three months, insiders have sold a total of 192,402 shares worth $2,465,381. Currently, insiders own 3.09% of the company’s stock.

Institutional Investor Movements

Several institutional investors have recently adjusted their positions in Savers Value Village. T. Rowe Price Investment Management Inc. increased its stake by 19.6% during the first quarter, now holding 7,137,153 shares valued at $49.25 million after acquiring an additional 1,167,253 shares. Baillie Gifford & Co. boosted its holdings by 76.4% during the same period, owning 6,509,978 shares valued at $44.92 million after acquiring 2,820,500 shares.

Vanguard Group Inc. grew its position by 6.7% in the third quarter, now owning 3,857,682 shares valued at $51.11 million after adding 242,149 shares in the last quarter. Ameriprise Financial Inc. increased its stake by 89.2%, now holding 2,150,724 shares worth $21.94 million after purchasing an additional 1,013,875 shares. Marshall Wace LLP also raised its stake by 97.8%, owning 1,832,697 shares valued at $18.69 million. Currently, 98.78% of the stock is held by institutional investors and hedge funds.

Savers Value Village operates retail stores in the United States, Canada, and Australia, selling second-hand merchandise under various brands, including Savers, Value Village, and Unique. The company sources its inventory from non-profit partners, offering a range of products from textiles to housewares. As the company navigates market fluctuations and changing investor sentiments, its performance will continue to be closely monitored by analysts and investors alike.