Savers Value Village Stock Rating Downgraded by Wall Street Zen

Savers Value Village (NYSE:SVV) received a downgrade from investment analysts at Wall Street Zen, shifting its rating from “buy” to “hold.” This change, communicated in a research report issued on October 28, 2023, highlights a trend of mixed evaluations from various financial institutions regarding the company’s stock.

Several analysts have recently reassessed their positions on Savers Value Village. Weiss Ratings upgraded the company from a “sell (d+)” rating to a “hold (c-)” on October 24, 2023. On August 1, 2023, Piper Sandler raised its price target for the shares from $11.00 to $12.00, assigning a “neutral” rating. Additionally, UBS Group increased its target price from $13.00 to $16.00, maintaining a “buy” rating as of October 31, 2023. Conversely, JPMorgan Chase & Co. adjusted its target price from $9.00 to $11.00, also issuing a “neutral” rating on July 28, 2023.

The stock has garnered varied opinions from a broad spectrum of analysts. Currently, one analyst rates it as a Strong Buy, four as Buy, three as Hold, and one as Sell. According to data from MarketBeat, Savers Value Village has a consensus rating of “Moderate Buy” with an average price target of $13.67.

Recent Earnings and Market Performance

Savers Value Village released its quarterly earnings report on January 15, 2024, revealing an earnings per share (EPS) of $0.18 and total revenue of $394.80 million. The company reported a return on equity of 9.18%, but noted a net margin of -0.11%, indicating challenges in profitability. Analysts forecast that the company will achieve an EPS of $0.28 for the current fiscal year.

In terms of stock performance, Savers Value Village saw a trading increase of 4.4% recently, suggesting some market confidence despite the downgrade.

Insider Activity and Institutional Holdings

Recent insider trading has also drawn attention. General Counsel Richard A. Medway sold 20,000 shares on September 26, 2023, at an average price of $13.69, totaling $273,800.00. CEO Mark T. Walsh sold 34,184 shares on September 24, 2023, at an average price of $13.08, amounting to $447,126.72. Over the past three months, insiders have sold a total of 192,402 shares worth $2,465,381, and they currently hold 3.09% of the company’s stock.

Institutional investors have been active in modifying their stakes in Savers Value Village. T. Rowe Price Investment Management Inc. increased its holdings by 19.6% in the first quarter, now owning 7,137,153 shares valued at $49,247,000. Baillie Gifford & Co. raised its stake by 76.4%, acquiring an additional 2,820,500 shares during the same period. Other notable increases include Vanguard Group Inc., which grew its position by 6.7% during the third quarter, and Ameriprise Financial Inc., which increased its stake by 89.2% during the second quarter.

Overall, 98.78% of Savers Value Village’s stock is currently owned by hedge funds and other institutional investors, reflecting a strong institutional interest despite the recent shifts in analyst ratings.

Savers Value Village operates retail stores that sell second-hand merchandise across the United States, Canada, and Australia. The company offers a wide range of products, including clothing, accessories, housewares, and books, sourced from non-profit partners. As the retail landscape evolves, investors will be closely monitoring how Savers Value Village adapts to market changes and consumer demands.