Designer Stock Story

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Gabriel Shpitalnik .  Story
DBI
 Stock
  

USD 15.19  0.04  0.26%   

By Gabriel Shpitalnik
Macroaxis Story
It looks like Carters will continue to recover much faster as its share price surged up 0.97% today to Designer Brands's 2.0619%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to concentrate on Designer Brands a little further and understand how it stands against Carters and other similar entities. We are going to examine some of the competitive aspects of both Designer and Carters.
Published over two months ago
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Designer Brands Sentiment by News Outlets

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Designer Brands Historical Investor Sentiment

Investor biases related to Designer Brands' public news can be used to forecast risks associated with investment in Designer. The trend in average sentiment can be used to explain how an investor holding Designer can time the market purely based on public headlines and social activities around Designer Brands. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Designer Brands' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Designer Brands' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Designer Brands' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Designer Brands.

Designer Brands Twitter Pulse

Investors have realized that leveraging social media to get the fastest information affecting stock prices isn't a theory anymore, it is a reality, and Twitter offers a platform that can outpace even the most trustworthy news aggregators. The influence of social media outlets on stock markets and stock prices of entities such as Designer Brands has been proven in recent years. We extract public sentiment from Twitter posts that could be utilized to determine whether Designer Brands' prices will increase or decrease.
Twitter's metrics such as likes, followers, and engagement can be good indicators of the reliance and probability of reaction to a specific tweet regarding Designer Brands. Our Twitter sentiment analysis of Designer Stock helps investors make informed decisions by leveraging the power of the community. It is a perfect supplementary tool for any beginner or an experienced trader.

Is Designer riskier than Carters (NYSE:CRI)?

By analyzing existing fundamental drivers between Designer Brands and Carters, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Carters with a short position in Designer Brands. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Designer Brands has an asset utilization ratio of 418.14 percent. This implies that the company is making $4.18 for each dollar of assets. An increasing asset utilization means that Designer Brands is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Designer or Pfizer is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Designer Brands dividends

A dividend is the distribution of a portion of Designer Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Designer Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Designer one year expected dividend income is about $0.03 per share.
The current Dividend Yield is estimated to increase to 0.0312, while Payment of Dividends and Other Cash Distributions is projected to decrease to (72.2 M).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-66.9 M-72.2 M
Dividend Yield 0.021  0.0312 
Dividends per Basic Common Share 0.75  0.74 
Investing in stocks that pay dividends, such as stock of Designer Brands, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Designer Brands must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Designer Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Designer Brands's Liquidity

Designer Brands financial leverage refers to using borrowed capital as a funding source to finance Designer Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Designer Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Designer Brands's total debt and its cash.

Correlation Between Designer and Pfizer Inc

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Designer Brands together with similar or unrelated positions with a negative correlation. For example, you can also add Pfizer to your portfolio. If Pfizer is not perfectly correlated to Designer Brands it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Designer Brands for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between DBI and PFE for more information.

Note

Are you currently holding both Designer Brands and Pfizer in your portfolio?
Please note if you are using this as a pair-trade strategy between Designer Brands and Pfizer, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Designer Brands exotic insider transaction detected

Legal trades by Designer Brands insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Designer insider trading alert for general transaction of class a common shares by Joseph Schottenstein, the corporate stakeholder, on 2nd of August 2022. This event was filed by Designer Brands Inc with SEC on 2022-08-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Designer Brands Further

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Designer Brands revenue. Based on the latest financial disclosure, Designer Brands reported 3.2 B of revenue. This is 55.12% lower than that of the Consumer Cyclical sector and significantly higher than that of the Apparel Retail industry. The revenue for all United States stocks is 66.08% higher than that of the firm. As for Carters we see revenue of 3.48 B, which is much higher than that of the Apparel Retail

Designer3.2 Billion
Sector0.0
Carters3.48 Billion
3.2 B
Designer
Sector
3.5 B
Carters

Designer Brands implied volatility may change after the rise

The expected short fall is down to -3.07 as of today. Designer Brands shows above-average downside volatility for the selected time horizon. We advise investors to inspect Designer Brands further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Designer Brands future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Designer Brands' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Designer Brands' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Designer Brands Implied Volatility

Designer Brands' implied volatility exposes the market's sentiment of Designer Brands stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Designer Brands' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Designer Brands stock will not fluctuate a lot when Designer Brands' options are near their expiration.

Our Takeaway on Designer Brands Investment

While other entities under the apparel retail industry are still a bit expensive, Designer Brands may offer a potential longer-term growth to stockholders. The bottom line, as of the 2nd of June 2022, our research shows that Designer Brands is a rather not too volatile investment opportunity with a low odds of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our final 90 days recommendation on the company is Strong Buy.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Designer Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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