Analysts Downgrade Coach Shares As Insiders Continue To Sell
Coach, Inc. (NYSE:COH) shares were down slightly on Tuesday after analysts with Brean Murray, Carret & Co. downgraded the company's stock.
Interestingly, the downgrade came shortly after officials at the company made hundreds of thousands of dollars' worth of insider trades, suggesting these could have been made on privileged knowledge.
The company's stock was downgraded to "Hold" from "Buy" on Tuesday.
"While we continue to believe the company's management is among the strongest in retailing, we are hard pressed to pay almost 15X next FY EPS for a play that does not involve cotton or pricing flexibility and where we are finishing a quarter (September 2012) where we believe it will be difficult for Coach to demonstrate material momentum, especially against their perceived competition," the brokerage wrote in a note. "As such, we are moving to the sidelines and waiting for a better risk/reward entry point."
In the last three months, company insiders have sold $383,740 in company stock, with shares worth $56.76 each.
Do you think these officials were privy to insider information?
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