Michaels Companies (NASDAQ:MIK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday.

According to Zacks, “Michaels has underperformed the industry in the past three months. Most of the decline is due to the company’s decision to close all of its 36 Pat Catan’s stores in fourth-quarter fiscal 2018. Further, a bleak view for the fiscal fourth quarter is hurting sentiment. It now projects comps at the lower end of the prior view of down 0.5% to up 0.5%. Further, adjusted earnings per share are projected to be at the lower end of the prior guided range of $1.42-$1.47. Furthermore, higher costs have been hurting the company's margins. Nevertheless, the company plans to rebrand and reopen 12 of the Pat Catan’s stores under its namesake brand in fiscal 2019. Moreover, it remains focused on integrating e-commerce and stores to enhance the omni-channel experience. It also boasts a robust surprise trend. The company delivered positive earnings surprise in three consecutive quarters, with sales beat in three of the last four quarters.”

A number of other equities analysts have also commented on MIK. Loop Capital set a $18.00 price objective on shares of Michaels Companies and gave the stock a “hold” rating in a research note on Thursday, December 6th. Wells Fargo & Co reaffirmed a “hold” rating and issued a $17.00 price objective (down previously from $19.00) on shares of Michaels Companies in a research note on Thursday, December 6th. BidaskClub lowered shares of Michaels Companies from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 8th. Citigroup started coverage on shares of Michaels Companies in a research note on Thursday, December 20th. They issued a “market weight” rating for the company. Finally, Bank of America reaffirmed a “buy” rating and issued a $21.00 price objective (down previously from $25.00) on shares of Michaels Companies in a research note on Wednesday, January 9th. Three equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and five have assigned a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $18.27.

Michaels Companies stock opened at $11.68 on Friday. Michaels Companies has a 52 week low of $11.44 and a 52 week high of $22.38. The company has a market capitalization of $1.84 billion, a P/E ratio of 5.38, a PEG ratio of 0.57 and a beta of 1.14.

A number of institutional investors have recently bought and sold shares of the stock. Oregon Public Employees Retirement Fund boosted its stake in shares of Michaels Companies by 1,108.6% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 525,907 shares of the specialty retailer’s stock valued at $39,000 after buying an additional 482,395 shares during the period. Acadian Asset Management LLC acquired a new stake in shares of Michaels Companies during the 4th quarter valued at $64,000. Advisor Group Inc. boosted its stake in shares of Michaels Companies by 128.3% during the 4th quarter. Advisor Group Inc. now owns 9,396 shares of the specialty retailer’s stock valued at $127,000 after buying an additional 5,280 shares during the period. Franklin Resources Inc. acquired a new stake in shares of Michaels Companies during the 3rd quarter valued at $195,000. Finally, We Are One Seven LLC boosted its stake in shares of Michaels Companies by 36.5% during the 4th quarter. We Are One Seven LLC now owns 15,165 shares of the specialty retailer’s stock valued at $205,000 after buying an additional 4,052 shares during the period.

Michaels Companies Company Profile

The Michaels Companies, Inc owns and operates arts and crafts specialty retail stores for Makers and do-it-yourself home decorators in North America. It operates Michaels stores that offer approximately 45,000 stock-keeping units (SKUs) in crafts, home decor and seasonal, framing, and paper crafting; and Aaron Brothers stores, which offer approximately 5,600 SKUs, including photo frames, a line of ready-made frames, art prints, framed art, art supplies, and custom framing services.

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Analyst Recommendations for Michaels Companies (NASDAQ:MIK)

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