Signet Jewelers Limited (SIG) Research Recommendations: Here’s What You Should Know

The stock of Signet Jewelers Limited (NYSE:SIG) decreased by -$1.27 on Friday to finish at $78.27, down -1.60 percent. The last five days have seen an average of 504,920 shares of common stock traded. 11 times new highs were reached in the current year, with a gain of $10.27. The average number of shares traded over the last 20 days was 609,390, while the average volume over the last 50 days totaled 936,328.

SIG stock appreciated 8.53% since last month. On 07/17/23, the company’s shares reached a one-month low of $68.34. The stock touched a high of $83.42 on 02/03/23, after rallying from a low of $51.29 in 52 weeks. The price of SIG stock has risen by 15.10% or $10.27 this year, reaching a new high 11 times. Still, the stock price is down -6.17% from the 52-week high.

Insider Transactions

SIG stock investors should be aware that Signet Jewelers Limited (SIG) stock had its last reported insider trading activity 13 days ago on Aug 01. On Aug 01, Chief People Officer FINN MARY ELIZABETH sold 7,283 shares at $79.13 each. This transaction resulted in the insider making $576,323. On Jul 31, Singleton Jamie sold 17,499 shares at a price of US$80.00. After the transaction, the insider now owns 181,651 shares. Edelman Oded had earlier sold 4,610 shares on Jul 28 for $77.98 a share. The transaction was completed for $359,504.

Valuation Metrics

Signet Jewelers Limited (SIG) has a trailing price-to-earnings (P/E) ratio of 9.72. Beta for the stock is 2.13. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.47, the price-to-book (PB) ratio of 2.24, and the price-to-cash flow ratio of 8.89.

Company paid $0.23 per share in dividends, remained unchanged from $0.23 last year. A $0.03 dividend increase was reported on Thursday March 16 2023.

Financial Health

For the three months ended April 29, Signet Jewelers Limited’s quick ratio was 0.50, while its current ratio was 1.70, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.09, and the total debt to equity ratio is 0.09. As far as profitability goes, gross margin for the trailing twelve months is 38.60% percent. Signet Jewelers Limited’s EBITDA margin for the year ended April 29 was 13.14%, whereas its operating margin stood at 9.20% for the same period. Based on annual data, it had gross profit of $3.05 billion and revenue of $7.84 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SIG’s return on assets (ROA) during the last 12 months has been 8.30%. There was a 30.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 35.50%.

Earnings Surprise

According to Signet Jewelers Limited’s quarterly financial report for the quarter that ended April 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.67 billion, while revenues fell by -10.21% to $49.6 million. It was predicted that Signet Jewelers Limited’s quarterly earnings would be $1.78, but it ended up being $1.49, beating the consensus by 19.50%. EBITDA was $144.3 million for the quarter. At the end of Signet Jewelers Limited’s most recent quarter ended April 29, its liabilities totaled 4.62 billion, while its total debt was $1.32 billion. Equity owned by shareholders amounts to $45.41 million.

Technical Picture

Here’s a quick look at Signet Jewelers Limited’s (SIG) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 52.25%, suggesting the stock is Neutral, with a 29.65% historical volatility rate.

The stochastic %K and %D were 62.57% and 74.41% respectively, while the average true range (ATR) was 2.48. Based on the 14-day stochastic reading of 52.34%, the RSI (14) reading is 57.14%. On the 9-day MACD Oscillator, the stock is at -0.68, and the 14-day reading is at 0.22.

Analyst Ratings

Signet Jewelers Limited (NYSE: SIG) was downgraded by Northcoast to a a Neutral rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Signet Jewelers Limited (SIG) an Hold rating. SIG is a stock that is recommended for selling by 0 brokerage firms, while 4 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 2 others recommend it as a buy.

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

The current consensus forecast for the stock is between $68.00 and $95.00, with a median target price of $71.00. In analyzing these forecasts, the average price target given by analysts for Signet Jewelers Limited (SIG) is $79.00.

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