(C) Reuters. Is Sequential Brands Group a Good Apparel Manufacturing Stock to Buy Now?
Leading apparel manufacturer Sequential Brands Group (SQBG) has seen its shares slip significantly over the past three months on investor anxiety about the company’s impending bankruptcy. Furthermore, with several class action lawsuits filed against the company adding fuel to the fire, will the stock be able to regain ground? Read on.Sequential Brands Group, Inc. (SQBG) owns and manages a diversified portfolio of consumer brands in the active and lifestyle categories. The brands under which it operates include William Rast, Heelys, Caribbean Joe, and Jessica Simpson. SQBG’s stock has gained 9.4% so far this year and 38.3% over the past month.
However, its share price has slumped 29.3% over the past three months. This decline can be attributed primarily to investors’ concerns surrounding the company’s deal to sell its majority stake in the fashion line back to Jessica Simpson and other assets as part of a potential bankruptcy filing.
SQBG’s stock is currently trading 61.2% below its all-time high of $40.49. In addition to the apparel manufacturer’s anticipated bankruptcy, the lawsuits filed against the company for alleged securities law violations could make matters worse. This uncertain backdrop has the potential to drive the stock into a downtrend.
Is Sequential Brands Group a Good Apparel Manufacturing Stock to Buy Now?
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