Chico’s FAS Inc. (CHS): Technicals Say You should Hold


Chico’s FAS Inc. (NYSE:CHS) saw a downside of -0.67% to $5.16 after subtracting -$0.04 on Tuesday. The 5-day average trading volume is 2,471,734 shares of the company’s common stock. It has gained $5.26 in the past week and touched a new high 4 times within the past 5 days. An average of 2,564,813 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,552,465.

CHS’s 1-month performance is 3.38% or $0.20 on its low of $4.33 reached on 01/19/23. The company’s shares have touched a 52-week low of $3.80 and high of $7.30, with the stock’s rally to the 52-week high happening on 01/06/23. YTD, CHS has achieved 5.69% or $0.26 and has reached a new high 2 times. However, the current price is down -29.30% from the 52-week high price.

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Insider Transactions

CHS stock investors last saw insider trading activity on Nov 30.Brooks Bonnie R. (Director) most recently sold 100,000 shares at $5.75 per share on Nov 30. This transaction cost the insider $575,000. Director, Brooks Bonnie R., sold 100,000 shares at a price of $5.02 on Sep 21. Then, on Jun 21, Executive Chair of the Board Brooks Bonnie R. sold 100,000 shares at a price of $5.57 per share. This transaction amounted to $557,000.

Valuation Metrics

CHS stock has a beta of 1.23. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.29 while the price-to-book (PB) in the most recent quarter is 1.93, with the price to cash flow ratio at 10.12.

Chico’s FAS Inc.’s quick ratio for the period ended October 30 was 0.50, with the current ratio over the same period at 1.20. As well, the company’s long term debt to equity for the quarter ending October 30 was 0.21, while the total debt to equity was 0.21. In terms of profitability, the gross margin trailing 12 months is 39.10%. The firm’s gross profit as reported stood at $664.0 million against revenue of $1.81 billion.

Earnings Surprise

For the quarterly period ending October 30 this year, Chico’s FAS Inc.’s cash and short-term investments amounted to $23.02 million against total debt of $573.25 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 25.95% to $24.62 million, while revenue of $41.96 million was -70.43% off the previous quarter. Analysts expected CHS to announce $0.13 per share in earnings in its latest quarter, but it posted $0.2, representing a 53.80% surprise. EBITDA for the quarter stood at more than $42.06 million. CHS stock balance sheet for the quarter ending October 30 shows that total liabilities totaled 838.39 million, with total debt at $573.25 million. Shareholders hold equity totaling $125.07 million.

Let’s look briefly at Chico’s FAS Inc. (CHS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 61.54% to suggest the stock is trending Neutral, with historical volatility in this time period at 60.39%.

The stock’s 5-day moving average is $4.82, reflecting a +15.22% or $0.68 change from its current price. CHS is currently trading +4.54% above its 20-day SMA, -19.11% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -15.28% and SMA200 by+11.99%.

Stochastic %K and %D was 76.81% and 51.16% and the average true range (ATR) pointed at 0.28. The RSI (14) points at 54.67%, while the 14-day stochastic is at 88.15% with the period’s ATR at 0.29. The stock’s 9-day MACD Oscillator is pointing at 0.34 and 0.28 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Chico’s FAS Inc. (NYSE: CHS), B. Riley Securities downgraded it to a Neutral rating. They previously had a Buy rating on the stock. Analysts offering their rating for CHS stock have a consensus rating for the stock as Hold. Currently, 0 brokerage advisors rate CHS as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 0 have offered a “buy” rating.

What is CHS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $6.00 and a high of $6.00, with their median price target at $6.00. Looking at these predictions, the average price target given by analysts is for Chico’s FAS Inc. (CHS) stock is $6.00.


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