Jefferies Initiates Coverage of V.F. with Hold Recommendation

A recent report reveals Jefferies has initiated coverage of V.F. Corporation with a Hold recommendation. Despite a slight decrease in institutional ownership, there has been an increase in the average portfolio weight among funds, indicating a mixed sentiment among investors regarding V.F.'s stock.

Date: 29-09-2024

AI Rating: 5

Jefferies' initiation of coverage on V.F. Corporation with a Hold recommendation suggests investors should remain cautious. The report indicates a drop in the number of funds holding shares in V.F., specifically a net decrease of 16 funds or 1.47% in the last quarter. This could indicate waning confidence among investors, which may negatively impact the stock price.

However, it is worth noting that while the number of funds has decreased, there was an increase in the average portfolio weight for all funds dedicated to V.F., up by 12.12%. This suggests that those investors still committed to V.F. are increasing their stakes, potentially offsetting some of the negative sentiment around the decreased number of funds.

Institutional ownership saw a substantial increase overall, with total shares owned by institutions rising by 12.91% to 495,886K shares. This indicates a strong belief from the remaining institutional investors in the long-term potential of V.F. despite the short-term fluctuations.

Looking at the allocations, PNC Financial Services Group, which holds 76,117K shares, has reduced its ownership by 0.52%, a relatively minor decrease. In contrast, Dodge & Cox increased its holdings by 16.75%, showing a greater willingness to invest further in V.F. Similarly, DODGX has also increased its shares owned, further indicating certain segments of institutional investors see value in the company.

However, Northern Trust’s significant decrease (61.23%) in its allocation could indicate potential concern about the company's performance or future prospects.

Stocks: VFC