The Dividend Daily

Clothing retailer The Buckle, Inc. (BKE) saw its coverage initiated as a “Sell” on Thursday by analysts at Goldman Sachs.

The analyst also set a $27 downside price target on the stock, which had closed on Wednesday at $30.29.

Goldman said that it’s noticed some “red flags” lately that suggest a downturn for the company, and noted that current consensus eatimates and stock price do not truly reflect BKE’s near-term earnings risk and lack of long-term growth prospects.

The Buckle shares fell $1.14, or -3.8%, in premarket trading Thursday.

The Bottom Line
We have avoided shares of BKE since our early June coverage began last year, when the stock was trading at $31.08. The company has a 2.64% dividend yield, based on last night’s closing stock price of $30.29. The stock has technical support in the $25-26 price area. If the shares can firm up, we see overhead resistance around the $35 price levels. We would remain on the sidelines for now.

The Buckle, Inc. (BKE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.