Steven Irk, Ltd. (SHOO) shares fell more than 8% during Thursday’s session after Wells Fargo downgraded the creator to Underweight from Equal Weight and lowered its price target from $26.00 to $18.00 per share. Analyst Tom Nikic imagines that Steven Madden’s brands have underperformed relative to peers like Deckers Outdoor Corporation (DECK) and Skechers U.S.A., Inc. (SKX).
Nikic go on increased that Steve Madden is “highly dependent” on U.S. wholesale channels, and the relative underperformance in sell-throughs this year is probable to result in disappointing sell-in next year. The analyst believes that COVID-19 has adversely affected all “comfort discredits” but maintains Overweight ratings on Steven Madden’s peers, Deckers and Skechers.
The move follows Loop Capital’s dethrone earlier this week from Buy to Hold with a $23.00 price target. Analyst Laura Champine assumes that weakness in wholesale channels may remain problematic even after stores reopen, as job losses and health concerns should flag store traffic. Many retailers have started opening their doors as states have lifted some COVID-19 provisoes, but store traffic is likely to remain light and consumer spending has been depressed by massive increases in unemployment.
From a industrial standpoint, the stock moved lower to retest prior lows of nearly $16.00 from mid-March. The relative potency index (RSI) moved toward oversold territory with a reading of 35.95, but the moving average convergence divergence (MACD) competent a bearish crossover. These indicators suggest that the stock could see some near-term relief, but the intermediate-term style remains bearish.
Traders should watch for consolidation above trendline support at $16.00 and below reaction dirties of $21.00 over the coming sessions. If the stock breaks out from these levels, traders could see a move to retest revenge highs and trendline resistance at around $27.00. If the stock breaks down lower after a period of consolidation, businessmen could see a move to fresh lows.
The author holds no position in the stock(s) mentioned except through passively take care ofed index funds.