Shares of Fossil Group have achieved a significant technical milestone, breaking through a major resistance level that market technicians closely monitor. The stock’s price has moved decisively above its 200-day moving average, an event widely interpreted by chart analysts as a potential indicator of a longer-term shift in momentum. This advance extends a recovery that has been building over recent months, despite experiencing heightened volatility during Wednesday’s trading session.
Fundamental Picture: A Mixed Bag
The fundamental backdrop supporting the share price appreciation presents a nuanced picture. The company’s latest quarterly report revealed a notable outperformance on the top line. For the third quarter, Fossil posted revenue of $270.2 million, surpassing market expectations which had been set at approximately $233.32 million.
However, profitability metrics told a different story. The company reported an adjusted loss per share of $0.63, which was notably wider than the consensus analyst estimate projecting a loss of $0.36 per share. This divergence highlights ongoing operational challenges even as sales improve.
Insider Confidence and Analyst Views
Contrasting with the operational loss, there appears to be growing confidence from within the company. Over the past three months, corporate insiders have purchased shares worth approximately $816,874. This substantial buying activity by executives often signals a belief in the firm’s future prospects.
Should investors sell immediately? Or is it worth buying Fossil?
Analyst opinions on the stock remain divided. While Weiss Ratings assigned a “Sell” recommendation to Fossil shares at the end of January, the average price target among covering analysts stands at $5.00, suggesting significant potential upside from current levels.
Technical Momentum in Focus
The primary catalyst for the current discussion is the stock’s breach of the 200-day moving average, situated at $2.87. With shares currently trading in the range of $3.46 to $3.47, they now sit comfortably above this long-term trend indicator. The critical question for traders is whether the equity can sustain this level to confirm a durable turnaround.
Price action on Wednesday demonstrated that the stock is prone to fluctuations following its recent rally. Nevertheless, the broader recovery trend from its 52-week low of $0.86 remains intact. The stock’s 52-week trading range has spanned from that low point to a high of $4.49.
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