The stock price of Iconix Brand Group plummeted after the company disclosed the departure of its COO in a regulatory filing with the Securities and Exchange Commission (SEC).
Iconix Brand reported that its COO Seth Horowitz resigned on April 13, 2014 after almost one year in his position. The company said it does not intend to seek a new COO at this time. A broader team within the company is currently handling the responsibilities of Horowitz.
Last month, Iconix Brand announced that its CFO Jeff Lupinacci resigned to pursue another business opportunity. David Blumberg, the head of strategic development of the company temporarily took over the responsibilities of Lupinacci until the appointment of a permanent CFO.
Iconix stock performance
The shares of Iconix Brand are trading $27.39, down by nearly 15% at the time of this writing, around 12:22 A.M. in New York. Over the past 52 weeks, the stock traded between $26.40 and $44.81 per share. The company lost more than 18% of stock value year-to-date.
Analyts reduce Iconix price target
Analysts at Roth Capital reduced their price target for the shares of Iconix Brand from $42 to $36 per share today. They have a Buy rating on the stock.
On the other hand, analysts at Cowen & Company downgraded their rating for Iconix Brand to Market Perform from Outperform. They also lowered their price for the stock from $40 to $36 per share.
Analysts at Zacks Equity Research have a Neutral rating and $36 per share price target for Iconix Brand.
Meanwhile, TheStreet Ratings team has a Buy recommendation on the shares of Iconix Brand due to several factors including its revenue growth, which outperformed the industry average of 11.3%. The revenues of Iconix Brand increase 17.3% from the same quarter last year.
TheStreet Ratings team also noted that the current gross profit margin of Iconix Brand is very high at 100%. Its net profit margin of 21.36% is also higher than the industry. The company’s return on equity improved slightly, but lower than the industry average.
During the fourth quarter, Iconix Brand posted non-GAAP net income of $0.56 per share and $112.4 million in total revenue.
Iconix Brand previous acquisitions
Last month, Iconix Brand acquired full ownership of Iconix China. The company bought the remaining 50% stake in Iconix China from its joint venture partner Novel Fashion Brands Limited for $56.4 million in cash and stock.
Iconix Brand also completed the acquisition of Strawberry Shortcake brand and related intangible assets from American Greetings for $105 million in cash.
