Daily Stock Analysis: The Buckle Inc.

Stock Exchange, Courses, Shares, Trading, Forex

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The Buckle Inc (BKE) is a retailer of casual apparel, footwear, and accessories. The company retails medium to better-priced casual apparel, footwear, and accessories for fashion-conscious young men and women.

It retails under the brand names 'Buckle' and 'The Buckle'. Buckle markets a wide selection of mostly brand-name casual apparel including denim, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear.

The company was formerly known as Mills Clothing, Inc. and changed its name to Buckle, Inc. in April 1991.

Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.

Three key data points gauge Buckle Inc or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

BKE Price

Over the past year, Buckle’s share price rose about 23% from $30.04 to $37.00 as of Wednesday’s market close.

If Buckle’s stock trades in the range of $30.00 to $45.00 this next year, its recent $37.00 share price might rise to $40.25 by next year. Of course, Buckle’s price could drop about the same $3.25 amount, or more.

My upside estimate of $3.25, however, is just about 50% of the average annual Buckle annual price gains over the past three years.
 

BKE Dividend

Buckle’s most recent variable dividends have been paid semi-annually, since 2017. Buckle’s most recent dividend, paid July 28th, was $0.35.  Buckle Inc’s annual dividend payout is projected at $1.40.  However, in some years the company has also paid special dividends of up to $5.65 (in December 2021).
 

BKE Returns

Adding the $1.40  anticipated annual dividend to Buckle Inc’s estimated $3.25 price upside reveals a $4.65 potential gross gain per share for the coming year.

At Wednesday’s $37.00 closing price, a little over $1000 would buy 27 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.37 per share.

Subtracting that maybe $0.37 brokerage cost from my estimated $4.65 gross gain per share makes a net gain amounting to $4.28 X 27 shares = $115.56 for about a 15.5% net gain.

This may be the time to pounce on Buckle Inc shares. But beware, Buckle Inc is a small cap stock. Furthermore, the estimated $37.80 dividend from $1000 invested comes in at just $0.80 more than the recent single share price. The choice is yours.

The foregoing article is based on past history of Buckle Inc. The only accurate measure of future performance is from active investment in the company.


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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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