Hibbett stock tumbles toward longest losing streak in over 13 months after BofA downgrade
Shares of Hibbett Inc. (HIBB) tumbled 7.0% in afternoon trading Thursday, putting them on track for their longest losing streak in over 13 months, after BofA Securities analyst Alexander Perry backed away from his bullish stance on the sporting goods retailer, citing expectations of lower demand as government stimulus fades. The stock has plunged 27.9% over the past seven sessions, since it closed at a record $99.69 on Nov. 22, which would be the longest stretch of losses since the eight-day losing streak that ended Oct. 30, 2020. Perry cut his rating to neutral from buy, while slashing his price target by 27% to $88. "We estimate there will be a 5-10% [year-over-year] decline in consumer income in C1H22 for someone earning $50,000 given headwinds from two rounds of economic impact payments ($2,000), potentially lower lump sum Child Tax Credit payments (given advanced payments in 2021), and subdued real wage growth given rising inflation," Perry wrote in a note to clients. Despite the recent weakness, the stock has run up 55.7% year to date, while the SPDR S&P Retail ETF (XRT) has climbed 44.0% and the S&P 500 has advanced 22.1%.
(END) Dow Jones Newswires
December 02, 2021 14:03 ET (19:03 GMT)
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