Skechers' Stock Split Applauded By Sterne Agee CRT Analyst

By Tomi KilgoreMarketWatch Pulse

Sterne Agee CRT analyst Sam Poser applauded Skechers USA Inc.'s move to split its stock 3 for 1, saying it will "increase the liquidity of the stock and make the stock more attractive to larger investors." The shoe seller's shares soared from around $50 to over $150 in a year. While stock splits don't reflect any changes in fundamentals, it can allow for investors to increase the number of shares they buy, with the same amount of money, or the number they sell, which increases liquidity. Poser reiterated his buy rating, and pre-split stock price target of $185, which is 26% above Thursday's closing price. "We remain hopeful that there are more shareholder friendly moves to come including possible share repurchases and/or returning cash dividends. Skechers currently does not pay a dividend. The stock has nearly tripled year to date, while the S&P 500 has slipped 1.1%.

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