SOTHEBY'S RECORD HIGHS
Posted on in Editorial
Sotheby’s (NYSE:BID) hit an all time high at $56.66 per share on July 28 - the highest price recorded since the company’s inception in the NYSE in 1988. Shares have increased by 45% so far this year.
According to Sotheby’s 2nd Quarter Earnings Results, total revenue for the second quarter has increased by 5% from $298.7 million to $317.9 million, primarily due to the increase in inventory from the first quarter.
Sotheby’s has shown solid performance in their auctions so far this year. In the May auctions in New York, a new record was made for the year and for the artist, Jean-Michel Basquiat. Japanese billionaire, Yusaku Maezawa, purchased Basquiat’s Untitled for $110.5MM.
According to market commentary, Sotheby’s strong performance in the stock market is fueled by investors’ confidence in Tad Smith’s leadership coupled by a weak US dollar.
Sidoti gave Sotheby’s a buy rating on shares, giving at $62 price objective, up from expectations of $59. Analysts such as Zacks Investment Research raised shares from a hold to buy rating, giving Sotheby’s a $63 price target.