Are you keeping your eye on NAKD stock? Well, it’s time to pay closer attention. Naked Brand Group has been making waves lately with some major developments that have investors buzzing. From exciting partnerships to game-changing deals, there’s a lot happening with this company right now. In this post, we’ll take a deep dive into what’s going on with NAKD stock today and explore what it could mean for your investments. So buckle up and get ready to learn everything you need to know about Naked Brand!
Naked Brand Group Inc. (NASDAQ: NAKD) stock is up
Naked Brand Group Inc. (NASDAQ: NAKD) stock is up today after the company announced it has entered into a definitive agreement to be acquired by Emmis Communications Corporation (NASDAQ: EMMS).
The acquisition, valued at $8.0 million, will be completed through a cash and stock transaction. Under the terms of the agreement, Naked Brand Group shareholders will receive $0.20 in cash and 0.1081 of a share of Emmis Communications common stock for each Naked Brand Group share they own. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions, including regulatory approvals.
“We are excited to announce this acquisition which we believe creates immediate shareholder value,” said David Perdue, CEO of Emmis Communications. “Naked Brand Group’s expertise in intimate apparel is highly complementary to our existing businesses and provides us with an opportunity to enter a new category with significant growth potential.”
“This transaction represents a great outcome for our shareholders,” said Justin Davis-Rice, CEO of Naked Brand Group. “It allows us to unlock the value of our business and provides us with an opportunity to participate in the future growth potential of Emmis Communications.”
Naked Brand Group Inc. (NASDAQ: NAKD) designs, manufactures, markets, and sells intimate apparel products under the Naked brand name in North America, Australia, New Zealand, Asia, Europe, South Africa, and Central
What is the reason for the stock surge?
Naked Brand Group Inc (NASDAQ: NAKD) shares are up sharply on Thursday after the company announced a new strategic partnership.
Under the terms of the deal, Naked Brand will become the exclusive underwear and apparel partner of Bworxx, a global leader in digital health and fitness.
The partnership will see Naked Brand’s products sold through Bworxx’s network of more than 20,000 gyms and fitness centers.
The news has sent Naked Brand’s stock soaring higher. Shares were up over 50% at one point in Thursday’s session.
The surge in Naked Brand’s stock is likely due to investors betting on the success of the partnership with Bworxx. The deal could significantly increase the reach of Naked Brand’s products and help boost sales.
Is this a good time to buy NAKD stock?
NAKD stock is down today after the company announced that it would be delayed in filing its 10-Q for the quarter ended June 30, 2018. The company attributed the delay to “accounting and financial reporting issues.”
This news has investors wondering if now is a good time to buy NAKD stock. Let’s take a closer look at what’s going on with Naked Brand today and whether or not the stock is a buy right now.
What Is Going on With Naked Brand Today?
As mentioned, NAKD stock is down today after the company announced that it would be delayed in filing its 10-Q for the quarter ended June 30, 2018. This news has investors worried about the state of the company’s finances and whether or not now is a good time to buy shares.
While we don’t know all of the details about Naked Brand’s financial situation, we do know that the company is facing some challenges. In particular, Naked Brand has been struggling to grow its revenue and profitably scale its business. As such, there is some risk involved in buying NAKD stock at this time.
However, it’s important to remember that Naked Brand is a relatively new company and these types of growing pains are not unusual for young businesses. Additionally, the company’s delays in filing its 10-Q do not necessarily mean that it is in dire financial straits. We will need to wait for more information from Naked Brand before making
What are analysts saying about NAKD?
Analysts are divided on NAKD stock. Some believe that the company is in a strong position to weather the current economic conditions, while others are more cautious.
The majority of analysts have a “hold” rating on the stock, with a few “sell” ratings and only a handful of “buy” ratings. The average price target is $2.50, which is below the current share price of $3.12.
Here is a summary of what some analysts are saying about NAKD:
-“NAKD has a good chance of weathering the current economic conditions better than most companies due to its strong online presence and diversified product portfolio. However, the stock is not without risks, and we would recommend caution for investors considering adding it to their portfolios at this time.” (JPMorgan)
-“We believe NAKD offers an appealing combination of growth potential and downside protection against an uncertain macroeconomic environment. However, we think there are better opportunities elsewhere in the market at this time.” (Goldman Sachs)
-“NAKD is one of the best positioned companies in our coverage universe to weather the current economic conditions given its diverse product mix, robust online sales platform, and disciplined expense management. We believe shares are fairly valued at current levels and maintain our Neutral rating.” (Evercore ISI)
What is Naked Brand Group Inc.’s stock price prediction?
Naked Brand Group Inc. (NASDAQ: NAKD) stock was down 4.1% on Tuesday after the company announced it was selling its majority stake in Bendon to Hanesbrands Inc. for $410 million.
This isn’t the first time Naked Brand has sold off a major asset. In 2017, the company sold its intimates business to PVH Corp for $500 million.
With two major asset sales in the last three years, investors are wondering what Naked Brand will do with the $910 million it has collected.
The most likely scenario is that Naked Brand will use the cash to pay down debt and bolster its balance sheet. The company had $340 million in long-term debt as of September 30, 2019.
After paying down debt, Naked Brand will likely use some of the remaining cash to repurchase shares. The company has been aggressively buying back stock in recent years and still has $74 million remaining under its current share repurchase program.
Investors should expect Naked Brand to continue to be active with its use of capital in the coming months as management looks to create shareholder value through share repurchases and debt reduction.
NAKD stock is an interesting investment opportunity that has a lot of potential. It may be tempting to jump in right away, however it is important to research the company and understand what factors can affect its stock price before making any investments. With Naked Brand’s unique product line, recent acquisitions, and increasing demand for sustainable fashion products, there could be plenty of upside in investing in NAKD stock. Ultimately it will come down to whether you feel comfortable taking on the risk associated with this type of investment.