Fred’s Inc. Same Store Sales Drop by 4.6% in September, Shares Drop by 6.5% (NASDAQ:FRED)
Fred’s’ (NASDAQ:FRED) same store sales fell 4.6% during the month of September. The company missed analysts’ expectations of a 1.3% year-over-year increase in sales. Fred’s’ stock fell by 6.5% in the first full-day of trading following the news.
FRED has been the subject of several recent research reports. Sidoti initiated coverage on shares of Fred’s in a report on Wednesday, July 6th. They set a “neutral” rating and a $17.00 target price for the company. MKM Partners reiterated a “neutral” rating and set a $14.00 target price on shares of Fred’s in a report on Thursday, July 7th. Zacks Investment Research downgraded shares of Fred’s from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 8th. Deutsche Bank AG reissued a “hold” rating on shares of Fred’s in a research report on Sunday, July 10th. Finally, Stephens downgraded shares of Fred’s from an “equal weight” rating to an “underperform” rating and set a $9.00 price target for the company. in a research report on Wednesday, August 31st. Three investment analysts have rated the stock with a sell rating and three have issued a hold rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $12.80.
In other Fred’s news, Director Michael Hayes sold 9,369 shares of Fred’s stock in a transaction that occurred on Friday, September 9th. The shares were sold at an average price of $10.17, for a total value of $95,282.73. Following the completion of the sale, the director now owns 1,538,152 shares of the company’s stock, valued at approximately $15,643,005.84. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 6.40% of the stock is currently owned by company insiders.
Shares of Fred’s (NASDAQ:FRED) opened at 9.87 on Thursday. The firm has a 50-day moving average of $10.94 and a 200-day moving average of $13.91. Fred’s has a 52-week low of $8.98 and a 52-week high of $17.14. The company’s market cap is $368.62 million.
Fred’s (NASDAQ:FRED) last issued its earnings results on Tuesday, August 30th. The company reported ($0.18) EPS for the quarter, topping the Zacks’ consensus estimate of ($0.21) by $0.03. The business had revenue of $529.50 million for the quarter, compared to the consensus estimate of $546.23 million. Fred’s had a negative net margin of 0.37% and a positive return on equity of 0.13%. The company’s revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.13) EPS. Equities research analysts forecast that Fred’s will post ($0.35) earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Friday, September 2nd were paid a $0.06 dividend. The ex-dividend date was Wednesday, August 31st. This represents a $0.24 dividend on an annualized basis and a yield of 2.43%. Fred’s’s dividend payout ratio is currently -109.09%.
A number of institutional investors have recently modified their holdings of the company. Wellington Management Group LLP increased its position in shares of Fred’s by 5.4% in the first quarter. Wellington Management Group LLP now owns 4,560,455 shares of the company’s stock worth $67,996,000 after buying an additional 233,539 shares in the last quarter. NWQ Investment Management Company LLC boosted its stake in shares of Fred’s by 10.0% in the first quarter. NWQ Investment Management Company LLC now owns 3,280,610 shares of the company’s stock valued at $48,914,000 after buying an additional 298,019 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Fred’s by 5.0% in the second quarter. Vanguard Group Inc. now owns 2,866,562 shares of the company’s stock valued at $46,181,000 after buying an additional 136,177 shares during the last quarter. BlackRock Fund Advisors boosted its stake in shares of Fred’s by 1.7% in the second quarter. BlackRock Fund Advisors now owns 2,365,238 shares of the company’s stock valued at $38,104,000 after buying an additional 38,478 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its stake in shares of Fred’s by 3.8% in the second quarter. Bank of New York Mellon Corp now owns 711,012 shares of the company’s stock valued at $11,455,000 after buying an additional 26,292 shares during the last quarter. Institutional investors and hedge funds own 95.08% of the company’s stock.
Fred’s, Inc (Fred’s) is engaged in the sale of general merchandise through its retail discount stores and full service pharmacies. The Company sells general merchandise to its over 20 franchisees. The Company has approximately 660 retail stores, over 370 pharmacies, and approximately three specialty pharmacy facilities located in over 15 states mainly in the Southeastern United States.
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