Himalaya Capital Acquires New Stake in Crocs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Should l Buy CROX?
Source: Fool
- New Investment Position: On February 17, 2026, Himalaya Capital Management disclosed a new position by acquiring 628,159 shares of Crocs, valued at approximately $53.72 million, indicating confidence in the brand's future growth potential.
- Asset Allocation Shift: This acquisition brings Crocs to 1.5% of Himalaya's 13F AUM, reflecting its strategic importance within a diversified investment portfolio dominated by major holdings like Alphabet and Bank of America.
- Financial Performance Review: Despite Crocs reporting a full-year revenue of $4.04 billion, down 1.5% year-over-year, the adjusted diluted EPS remained robust at $12.51, showcasing resilience in its earnings profile amidst challenges.
- Cash Flow and Buybacks: With operating cash flow reaching $710 million, translating to about $659 million in free cash flow, Crocs' management utilized this capital to repurchase 6.5 million shares, signaling strong confidence in the company's intrinsic value.
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Analyst Views on CROX
Wall Street analysts forecast CROX stock price to rise
8 Analyst Rating
1 Buy
7 Hold
0 Sell
Hold
Current: 80.000
Low
75.00
Averages
88.71
High
100.00
Current: 80.000
Low
75.00
Averages
88.71
High
100.00
About CROX
Crocs, Inc. is engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for all. The Company's brands include Crocs and HEYDUDE. The Crocs Brand's collection contains Croslite material, a proprietary, molded footwear technology. It also uses Croslite material formulations in connection with material technologies used in its visible comfort collections, such as its LiteRide and Free Feel Technology products. The HEYDUDE Brand offers shoes with an iconic and versatile loafer silhouette with many wearing occasions that focus on casualization, comfort-led functionality and personalization. It sells its products in more than 80 countries, through wholesale and direct-to-consumer channels. Its wholesale channel includes domestic and international multi-brand retailers, e-tailers and others. Its direct-to-consumer channel includes Company-operated retail stores, Company-operated e-commerce sites and third-party marketplaces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Crocs Position Liquidation: Although Crocs' stock is considered undervalued with projected EPS between $12.88 and $13.55, a slight revenue decline over the past year prompted investors to sell out, reflecting a cautious outlook on the brand's future performance.
- W.P. Carey Reduction: As a safe REIT, W.P. Carey has risen 11% in 2026, but its 5.2% dividend yield lacks appeal, leading investors to cut their positions, signaling worries about economic conditions affecting real estate.
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- Crocs' Turnaround Potential: Crocs (CROX) has a market cap of $3.9 billion and a forward P/E of about 6, with a free cash flow yield of 16%; despite challenges from the HeyDude acquisition, strong international sales and plans to open 250 new stores in China, India, and Western Europe could boost its stock, allowing investors to buy 12 shares for $1,000.
- Jakks Pacific's Growth Opportunities: Jakks Pacific (JAKK) has a market cap of $226 million and a forward P/E under 6.5; despite facing high tariffs and consumer pressures, it achieved a 15-year high gross margin of 32.4% and has no debt, with potential growth from a strong slate of children's movies, allowing investors to buy 50 shares for $1,000.
- Market Environment Impact: The overall consumer market faces challenges, yet companies like Amazon, Crocs, and Jakks Pacific demonstrate strong rebound potential through innovation and market expansion strategies, making them attractive long-term investment opportunities.
See More
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- Amazon Discount Trading: Amazon (AMZN) is currently trading at a forward P/E ratio below 28 times, significantly lower than Walmart and Costco's over 40 times, indicating a strong discount while its retail sales growth remains robust, showcasing the company's competitive edge in e-commerce.
- Crocs Turnaround Opportunity: Crocs (CROX) trades at approximately 6 times forward P/E and a 16% free cash flow yield, facing challenges post-HeyDude acquisition, yet plans to open 250 new stores internationally, particularly in China and India, could significantly boost its stock if successful in its turnaround efforts.
- Jakks Pacific Market Potential: Jakks Pacific (JAKK) has seen its stock rise over 20% this year but still trades at a forward P/E under 6.5 times, expected to benefit from a strong slate of children's movies, including Toy Story 5 and The Super Mario Galaxy Movie, which will drive growth in its toys and costumes segments.
- Investment Opportunities in Consumer Sector: There are several quality cheap stocks in the consumer sector, and if investors can allocate $1,000 into these stocks, they may have the opportunity to achieve substantial returns in the future, especially in the context of market volatility where finding undervalued assets is crucial.
See More
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- Oil Market Volatility: Despite the IEA's announcement of a 400 million-barrel strategic reserve release, oil prices fell by 5%, indicating market sensitivity to geopolitical risks, particularly regarding the uncertain situation in the Strait of Hormuz.
- Major Indices Performance: On Wednesday, all major indices except the Nasdaq, which rose 0.08% to 22,716, declined, with the Dow Jones Industrial Average dropping 0.61% to 47,417, reflecting investor concerns over oil price fluctuations.
- Rising Bond Yields: On Wednesday, yields across all maturities increased, with the 30-year bond yield reaching 4.88% and the 10-year note at 4.23%, indicating changing market expectations regarding future inflation.
- Cryptocurrency Market Resilience: Despite ongoing geopolitical tensions, Bitcoin remained stable near $70,000, demonstrating market sensitivity to oil price fluctuations, while traders showed increased confidence in potential price increases.
See More
Crocs Faces Multiple Headwinds, Analyst Maintains Neutral Rating
- Inventory Reset and DTC Growth: Crocs has taken necessary steps to reset inventory levels and drive DTC growth, yet investors remain focused on the success of the brand turnaround in North America, which represents over 40% of total sales.
- Ongoing Sales Pressure: Analysts expect Crocs' sales in North America to remain pressured until 2027, primarily due to macroeconomic conditions and weakened demand among lower-income consumers, alongside increased competition from athletic footwear.
- Decline in Wholesale Sales: While international sales have supported DTC, wholesale sales inflected negatively in Q3, particularly in the U.S., further decelerating in Q4 to represent just 20% of sales, indicating challenges in rebuilding confidence with wholesale partners.
- Consistent Analyst Ratings: BTIG's Neutral rating aligns with the consensus among Wall Street analysts, although Seeking Alpha analysts continue to view Crocs as a Buy, reflecting a divergence in market sentiment regarding its future performance.
See More
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- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these companies.
- Market Dynamics: While specific stock names are not mentioned, changes in analyst ratings typically influence investor decisions and can lead to price volatility in the affected stocks.
- Investor Focus: Investors considering purchasing MSTR stock should pay attention to the latest insights from analysts to make more informed investment choices.
- Information Source: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing a comprehensive market perspective.
See More
