Xcel Brands Inc (NASDAQ:XELB) Explode to the Upside

Xcel Brands Inc (NASDAQ:XELB)

Xcel Brands Inc (NASDAQ:XELB) shares were up as much as 56.8% this morning on heavy volumes. XELB shares are normally thinly-traded. Their average daily volume is listed at just 17,950 shares. By noon EST, almost 310,000 shares had traded hands as the price exploded from yesterday’s close of $2.55 to reach as high as $4.00 before settling back to trade around $3.15. Last week XELB shares were trading below $2. Xcel Brands Inc (NASDAQ:XELB) have been sliding downwards since 2015 when the shares were trading above $8 for much of the year. XELB has a 52-week low of $1.80 and a 52-week high of $6.75.

Xcel Brands Inc (NASDAQ:XELB), headquartered in New York City, is a brand management and media company engaged in the design, production, licensing, marketing and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods, and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel owns and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder and Highline Collective brands. The company executes an omnichannel sales strategy which includes the promotion and sale of products under its brands through direct-response television, internet, brick and mortar retail, and e-commerce channels.

Xcel Brands Inc (NASDAQ:XELB) sales have trended up since 2012 when the company reported $12.7 million in sales. By 2016 sales revenues had increased to$32.8 million. Unfortunately, the number of shares outstanding has mirrored the uptrend. In 2012 there were 6.94 million XELB shares outstanding but by 2016 there were 18.63 million. EPS has been weak as well. In 2013 there was an EPS profit of $0.18 followed in the subsequent years by an EPS profit of $0.00, $0.18, and in 2016 $0.15. Wunderlich securities follows Xcel Brands Inc (NASDAQ:XELB) and it rates the shares as a “Strong Buy”.

4/6/2017
Ticker Symbol XELB
Last Price a/o 11:56 AM EST  $                      3.40
Average Volume                      17,950
Market Cap (mlns)  $                    42.46
Sales (mlns) $32.80
Shares Outstanding (mlns) 16.65
Share Float (mlns) 8.87
Shortable Yes
Optionable No
Inside Ownership 16.40%
Short Float 0.24%
Short Interest Ratio 1.17
Quarterly Return -42.70%
YTD Return -42.05%
Year Return -57.43%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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