G III Story

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GIII -- USA Stock  

USD 27.19  0.36  1.31%

In this post we will concentrate on G III. We will evaluate if G III shares are reasonably priced going into January. G III Apparel is currently traded for 23.98. The entity has historical hype elasticity of -0.64. The average price elasticity to hype of competition is about -0.07. The firm is forecasted to decline in value after the next press release, with the price expected to drop to 23.32. The average volatility of headline impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -2.75%, whereas the daily expected return is currently at 1.18 percent. Given the investment horizon of 30 days the next forecasted announcement will be in about 8 days.
Published over a month ago
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Should I sell my G III (NASDAQ:GIII) position?
G III holds a performance score of 16 on a scale of zero to a hundred. The firm retains a Market Volatility (i.e. Beta) of 2.0741, which attests to a somewhat significant risk relative to the market. Let's try to break down what G III's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, G III will likely underperform. Although it is vital to follow G III Apparel current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. Our approach into determining future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if G III Apparel expected return of 1.18 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use G III Apparel jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to analyze future returns on G III Apparel.
The successful prediction of G III stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as G III Apparel, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of G III based on G III hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to G III's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to G III's related companies.

Use Technical Analysis to project G III expected Price

G III technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of G III technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of G III trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for G III, but it might be worth checking our own buy vs. sell analysis

Acquisition by Johnson Robert L 4 of 7097 shares of G III subject to Rule 16b-3

Legal trades by G III 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:
G III insider trading alert for grant of common stock par value $.01 per share by Johnson Robert L 4, the corporate stakeholder, on 25th of September 2020. This event was filed by G Iii Apparel Group Ltd with SEC on 2020-09-25. 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 the case for G III

The company reported the previous year's revenue of 2.59 B. Net Income was 66.4 M with profit before overhead, payroll, taxes, and interest of 1.12 B.
 2017 2018 2019 2020 (projected)
Long Term Debt to Equity0.350.330.310.27
Interest Coverage3.545.255.135.26

Cost of Revenue Breakdown

G III Cost of Revenue is increasing over the last several years with slightly volatile swings. Cost of Revenue is predicted to flatten to about 1.8 B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. G III Cost of Revenue is most likely to increase significantly in the upcoming years. The last year's value of Cost of Revenue was reported at 2.04 Billion
2013
2014
2015
2016
2017
2018
2019
2020
20131.13 Billion
20141.36 Billion
20151.51 Billion
20161.55 Billion
20171.75 Billion
20181.97 Billion
20192.04 Billion
20201.83 Billion

Will G III drop impact its fundamentals?

Coefficient of variation is down to 392.96. It may hint to a possible volatility drop. G III Apparel shows above-average downside volatility for the selected time horizon. We advise investors to inspect G III Apparel further and ensure that all market timing and asset allocation strategies are consistent with the estimation of G III future alpha.

Our Final Takeaway

While some firms under the apparel retail industry are still a bit expensive, G III may offer a potential longer-term growth to stockholders. To sum up, as of the 7th of December 2020, we believe G III is currently overvalued. It hyperactively responds to market trends and projects below average probability of financial unrest in the next two years. However, our concluding 30 days buy vs. sell advice on the company is Buy.

About Contributor

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 Vlad Skutelnik do not own shares of G III Apparel. Please refer to our Terms of Use for any information regarding our disclosure principles.

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