Culp, Inc. Receives 'Sell' Rating from StockNews.com Analysts

Equity research analysts at StockNews.com have recently commenced coverage on Culp, Inc. CULP, a prominent textile manufacturer known for its production of mattress fabrics and sewn covers. In their initial report issued on Sunday, the analysts have assigned a 'sell' rating to the company’s shares, indicating a bearish stance on the stock's future performance.

Detailed Analysts' Assessment on Culp

Following the initiation of coverage, Culp’s stock began trading at $5.20 on the preceding Friday. The company's stock has been fluctuating around a 50-day moving average of $5.57 while maintaining a 200-day moving average slightly lower at $5.32. With a market capitalization of around $64.79 million, Culp has experienced a broad trading range over the last year, touching a low of $4.16 and reaching a high of $5.99. Unfortunately, its performance metrics feature a concerning price-to-earnings (P/E) ratio of -2.19 and a beta of 1.28, indicating potentially higher volatility compared to the broader market.

Financial results were last reported by Culp on August 30th, with the textile maker posting a quarterly earnings per share of ($0.24), which was favorably above analysts' predictions by $0.11. Despite beating the earnings estimate, the firm reported a negative return on equity at 30.41% and an unfavorable net margin of 12.74%. Revenue for the quarter stood at $56.66 million, falling short of the $59.73 million consensus estimate. Analysts project that for the current fiscal year, Culp will report earnings per share of approximately -$0.34.

Insider Activity and Institutional Holdings

Insider transactions show interesting activity within Culp, as Thomas Bruno, an insider, acquired 6,965 shares at an average purchase price of $5.56. This transaction added to Bruno’s holdings, bringing his total investment in the company to an estimated value of $164,142.32. In the preceding 90 days, insiders have cumulatively bought 13,389 shares of the company's stock, valued at $75,416. Insider ownership currently accounts for about 6.60% of the stock.

Looking at institutional investor movements, significant adjustments have been observed in Culp's stock ownership. Ancora Advisors LLC augmented its shares by 16.9%, State Street Corporation STT increased its holdings by 5.2%, and Northern Trust Corporation NTRS also raised its stake by 15.0%. Notably, HighTower Advisors LLC had enhanced its investment in Culp by 33.8% during the third quarter. Cumulatively, hedge funds and other institutional investors hold roughly 53.69% of Culp’s outstanding shares.

About Culp, Inc.

Culp, Inc. holds a significant position in the textile manufacturing industry, specializing in the supply of high-quality fabrics and kits designed for the production of mattresses and bedding products. The company has established a global footprint, with operations spanning across North America, the Far East, and Asia. Headquartered in High Point, North Carolina, Culp continues to be a key supplier in its niche market.

Culp, Textile, Rating