Cherokee (CHKE) Raised to Buy at Zacks Investment Research

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Cherokee (NASDAQ:CHKE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Thursday, September 20th. The brokerage presently has a $1.00 price target on the stock. Zacks Investment Research‘s price target suggests a potential upside of 49.25% from the company’s previous close.

According to Zacks, “Cherokee Inc. is a marketer and licensor of Cherokee and Sideout brand products, is continuing its negotiations for domestic and international licensing contracts covering multiple categories of merchandise. Cherokee currently has licensing agreements in many categories, including family apparel and fashion accessories, as well as luggage, cosmetics and footwear. (PRESS RELEASE) “

Other analysts have also recently issued research reports about the company. Roth Capital reissued a “neutral” rating and issued a $20.00 price objective on shares of Cherokee in a research report on Friday, June 15th. ValuEngine cut Cherokee from a “buy” rating to a “hold” rating in a research report on Thursday, August 2nd. Finally, Bank of America raised Cherokee from an “underperform” rating to a “neutral” rating and raised their price objective for the stock from $4.00 to $6.00 in a research report on Friday, July 27th. Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $9.00.

NASDAQ:CHKE traded down $0.13 during midday trading on Thursday, hitting $0.67. The stock had a trading volume of 498,055 shares, compared to its average volume of 346,678. Cherokee has a one year low of $0.38 and a one year high of $3.18. The stock has a market cap of $10.39 million, a P/E ratio of -0.94 and a beta of 1.36. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 3.55.

Cherokee (NASDAQ:CHKE) last announced its earnings results on Thursday, September 13th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.04. The business had revenue of $7.07 million for the quarter, compared to analysts’ expectations of $6.03 million. Cherokee had a negative return on equity of 28.27% and a negative net margin of 197.06%. On average, sell-side analysts anticipate that Cherokee will post -0.4 EPS for the current fiscal year.

In other Cherokee news, major shareholder Strategic Opportunit Headlands sold 286,032 shares of Cherokee stock in a transaction dated Tuesday, September 18th. The stock was sold at an average price of $0.91, for a total transaction of $260,289.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Cove Street Capital, Llc acquired 716,904 shares of Cherokee stock in a transaction on Friday, September 28th. The shares were bought at an average price of $0.74 per share, with a total value of $530,508.96. The disclosure for this purchase can be found here. Company insiders own 11.30% of the company’s stock.

Cherokee Company Profile

Cherokee Inc markets, manages, and licenses fashion and lifestyle brands for apparel, footwear, home products, and accessories worldwide. It owns or licenses Cherokee, Hi-Tec, Magnum, 50 Peaks, Interceptor, Hawk Signature, Tony Hawk, Liz Lange, Completely Me by Liz Lange, Flip Flop Shops, Everyday California, Carole Little, Sideout, Saint Tropez-West, Chorus Line, All That Jazz, Sideout Sport, and other brands.

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