Deckers stock split takes hold and shares slip

By James Rogers

Shares of Deckers Outdoor Corp. began trading on a split-adjusted basis after market open Tuesday

Shares of Ugg and Hoka parent Deckers Outdoor Corp. are down Tuesday after the shoe company's six-for-one stock split took hold.

The stock (DECK), which rose premarket, is down 0.3%, while the S&P 500 SPX is up 0.5%.

On Sept. 13, Deckers announced stockholder approval for the forward stock split and a proportionate increase in the number of authorized shares of its common stock. The additional shares of common stock were distributed after market close on Monday, with trading on a split-adjusted basis beginning after market open Tuesday.

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In a statement, Deckers CEO Stefano Caroti said that the split will make ownership of the stock more affordable and attractive to a broader group of investors, including employees.

In a note released Monday, Stifel updated its Deckers model to reflect the stock split and changed its price target to $147.83 from $887. Stifel has a hold rating for Deckers.

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Of 23 analysts surveyed by FactSet, 15 have an overweight or buy rating, seven have a hold rating and one has an underweight rating.

Deckers reported upbeat first-quarter results and boosted its full-year profit outlook in July, lifted by revenue growth in its Ugg and Hoka brands.

Related: Upbeat sales in Hoka, Ugg brands prompt a boost to outlook at Deckers

Shares of Deckers are up 40.1% in 2024, outpacing the S&P 500's gain of 18.7%.

-James Rogers

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09-17-24 1136ET

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