Zacks Investment Research Downgrades Culp (CULP) to Strong Sell

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Culp (NYSE:CULP) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday, Zacks.com reports.

According to Zacks, “Culp, Inc. manufactures, sources, markets, and sells mattress fabrics and upholstery fabrics. The Company’s fabrics are used in the production of residential and commercial furniture and bedding products, including sofas, recliners, chairs, loveseats, sectionals, sofa-beds, office seating, panel systems, and mattress sets. It operates in two segments, Mattress Fabrics and Upholstery Fabrics. The Mattress Fabrics segment offers woven jacquard, knitted, and converted fabrics for covering mattresses, box springs, and foundations. The Upholstery Fabric segment provides synthetic leathers, velvets, woven jacquards, woven dobbies, and suedes. Culp, Inc. is headquartered in High Point, North Carolina. “

Separately, Raymond James upgraded shares of Culp from a “market perform” rating to an “outperform” rating and set a $22.00 price objective for the company in a research report on Friday, March 1st. One investment analyst has rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating to the company’s stock. Culp currently has a consensus rating of “Hold” and a consensus target price of $26.00.

Shares of CULP stock opened at $20.22 on Tuesday. The company has a market cap of $258.13 million, a price-to-earnings ratio of 13.55 and a beta of 0.28. Culp has a 12-month low of $17.05 and a 12-month high of $32.05.

Culp (NYSE:CULP) last issued its quarterly earnings data on Wednesday, February 27th. The textile maker reported $0.27 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.25 by $0.02. The firm had revenue of $77.23 million during the quarter, compared to the consensus estimate of $79.38 million. Culp had a net margin of 6.49% and a return on equity of 8.11%. Sell-side analysts anticipate that Culp will post 0.89 EPS for the current fiscal year.

In other Culp news, Director Fred A. Jackson purchased 3,000 shares of the company’s stock in a transaction dated Monday, March 11th. The stock was bought at an average cost of $17.57 per share, for a total transaction of $52,710.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 11.70% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its position in shares of Culp by 2.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 780,927 shares of the textile maker’s stock valued at $14,760,000 after buying an additional 17,927 shares in the last quarter. Vanguard Group Inc increased its stake in Culp by 6.8% in the third quarter. Vanguard Group Inc now owns 505,338 shares of the textile maker’s stock valued at $12,230,000 after acquiring an additional 32,364 shares during the last quarter. Two Sigma Investments LP increased its stake in Culp by 41.7% in the fourth quarter. Two Sigma Investments LP now owns 20,616 shares of the textile maker’s stock valued at $390,000 after acquiring an additional 6,069 shares during the last quarter. Thomson Horstmann & Bryant Inc. increased its stake in Culp by 1.5% in the fourth quarter. Thomson Horstmann & Bryant Inc. now owns 257,886 shares of the textile maker’s stock valued at $4,874,000 after acquiring an additional 3,808 shares during the last quarter. Finally, Bessemer Group Inc. increased its stake in Culp by 23.0% in the fourth quarter. Bessemer Group Inc. now owns 22,500 shares of the textile maker’s stock valued at $425,000 after acquiring an additional 4,200 shares during the last quarter. Institutional investors own 86.27% of the company’s stock.

About Culp

Culp, Inc manufactures, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in North America, the Far East, Asia, and internationally. It operates in two segments, Mattress Fabrics and Upholstery Fabrics. The Mattress Fabrics segment offers woven jacquard, knitted, and converted fabrics for use in the production of bedding products, including mattresses, box springs, foundations, and top of bed components.

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