Fortune Brands Home & Security (FBHS) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Fortune Brands Home & Security (NYSE:FBHS) from a hold rating to a buy rating in a report issued on Monday morning. They currently have $73.00 target price on the industrial products company’s stock.
According to Zacks, “In the last three months, Fortune Brands' shares have outperformed the industry. We believe that the company is poised to gain from its organic and inorganic initiatives in the long run. In fourth-quarter 2017, the company's earnings surpassed the Zacks Consensus Estimate by 1.3% while grew 13% year over year. For 2018, the company anticipates gaining from roughly 5-7% growth in the U.S. home products market and 5-6% rise in global market. Earnings will be within $3.54-$3.66, gaining from 6-7% sales growth and lower corporate tax rates. Cabinets sales are likely to grow in the mid-single digit range in the year. Sales in the Doors segment will increase in high-single digits to low-double digits and Security sales are predicted to increase in mid-single digits. Plumbing segment will benefit from new brand additions.”
A number of other analysts have also issued reports on FBHS. Nomura cut their target price on Fortune Brands Home & Security from $78.00 to $74.00 and set a neutral rating on the stock in a research report on Friday, February 2nd. Barclays cut their target price on Fortune Brands Home & Security from $71.00 to $70.00 and set an equal weight rating on the stock in a research report on Friday, February 2nd. Credit Suisse Group boosted their target price on Fortune Brands Home & Security from $72.00 to $74.00 and gave the company an outperform rating in a research report on Thursday, October 26th. JPMorgan Chase & Co. boosted their target price on Fortune Brands Home & Security from $70.00 to $78.00 and gave the company an overweight rating in a research report on Monday, October 30th. Finally, BidaskClub lowered Fortune Brands Home & Security from a hold rating to a sell rating in a research report on Tuesday, November 7th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the stock. Fortune Brands Home & Security currently has an average rating of Hold and a consensus price target of $72.92.
Fortune Brands Home & Security (NYSE:FBHS) last released its quarterly earnings results on Thursday, February 1st. The industrial products company reported $0.80 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.80. The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.39 billion. Fortune Brands Home & Security had a net margin of 8.95% and a return on equity of 18.73%. The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.71 EPS. analysts forecast that Fortune Brands Home & Security will post 3.63 earnings per share for the current year.
Fortune Brands Home & Security announced that its board has authorized a share repurchase program on Monday, December 11th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the industrial products company to reacquire shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 14th. Stockholders of record on Friday, February 23rd will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Thursday, February 22nd. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.28%. This is a positive change from Fortune Brands Home & Security’s previous quarterly dividend of $0.18. Fortune Brands Home & Security’s dividend payout ratio is currently 23.53%.
In other news, Director Ronald V. Waters sold 5,000 shares of the company’s stock in a transaction on Friday, January 5th. The stock was sold at an average price of $71.50, for a total transaction of $357,500.00. Following the sale, the director now owns 21,674 shares of the company’s stock, valued at $1,549,691. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.61% of the stock is currently owned by corporate insiders.
Institutional investors have recently bought and sold shares of the company. Chicago Partners Investment Group LLC purchased a new stake in shares of Fortune Brands Home & Security during the third quarter worth $117,000. Cerebellum GP LLC purchased a new stake in shares of Fortune Brands Home & Security during the fourth quarter worth $127,000. Bessemer Group Inc. increased its position in shares of Fortune Brands Home & Security by 1,169.9% during the fourth quarter. Bessemer Group Inc. now owns 1,943 shares of the industrial products company’s stock worth $134,000 after acquiring an additional 1,790 shares during the period. Pinebridge Investments L.P. increased its position in shares of Fortune Brands Home & Security by 325.8% during the fourth quarter. Pinebridge Investments L.P. now owns 1,946 shares of the industrial products company’s stock worth $133,000 after acquiring an additional 1,489 shares during the period. Finally, Calton & Associates Inc. purchased a new stake in shares of Fortune Brands Home & Security during the fourth quarter worth $193,000. 87.52% of the stock is currently owned by institutional investors and hedge funds.
Fortune Brands Home & Security Company Profile
Fortune Brands Home & Security, Inc is a holding company. The Company operates through four segments. The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names, including Aristokraft, Mid-Continent, Diamond, Kitchen Classics, Kitchen Craft, Schrock, Omega, Homecrest, Thomasville, StarMark and Ultracraft.
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