Fortune Brands Home & Security (NYSE:FBHS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Thursday. The brokerage currently has a $77.00 price target on the industrial products company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.46% from the company’s current price.
According to Zacks, “In the last six months, Fortune Brands' shares have outperformed the industry. We believe that the company is well positioned to benefit from its organic and inorganic initiatives in the long run. Also, its 11% hike in quarterly dividend rate and newly approved $250 million share buyback program will work in its favor. For 2017 (results not yet released), the company anticipates gaining for roughly 6-7% growth in the U.S. home products market and 5-6% rise in global market. On a segmental basis, Cabinets revenues are likely to grow in the mid-single digit range in the fourth quarter. Sales in the Doors segment will increase in mid-single digits in 2017. Security sales are predicted to increase in mid-single digits in the fourth quarter while register growth of 3% or more for the full year. Plumbing segment will benefit from new brand additions.”
A number of other equities research analysts also recently issued reports on the company. Royal Bank of Canada lowered their price target on Fortune Brands Home & Security from $78.00 to $74.00 and set an “outperform” rating for the company in a research report on Monday, November 13th. SunTrust Banks reissued a “hold” rating and set a $63.00 price target on shares of Fortune Brands Home & Security in a research report on Friday, November 10th. BidaskClub downgraded Fortune Brands Home & Security from a “hold” rating to a “sell” rating in a research report on Tuesday, November 7th. JPMorgan Chase & Co. boosted their price target 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, Citigroup boosted their price target on Fortune Brands Home & Security from $68.00 to $71.00 and gave the company a “neutral” rating in a research report on Friday, October 27th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the company. Fortune Brands Home & Security currently has a consensus rating of “Hold” and an average target price of $71.33.
Shares of Fortune Brands Home & Security (NYSE:FBHS) traded down $1.24 during trading hours on Thursday, hitting $69.08. The stock had a trading volume of 1,197,000 shares, compared to its average volume of 995,314. The stock has a market capitalization of $10,670.00, a P/E ratio of 23.90, a P/E/G ratio of 2.01 and a beta of 1.41. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.17 and a current ratio of 1.87. Fortune Brands Home & Security has a twelve month low of $53.15 and a twelve month high of $71.73.
Fortune Brands Home & Security (NYSE:FBHS) last announced its quarterly earnings data on Wednesday, October 25th. The industrial products company reported $0.83 EPS for the quarter, beating the Zacks’ consensus estimate of $0.82 by $0.01. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.38 billion. Fortune Brands Home & Security had a return on equity of 18.64% and a net margin of 8.62%. The business’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.80 earnings per share. research analysts forecast that Fortune Brands Home & Security will post 3.07 earnings per share for the current year.
Fortune Brands Home & Security declared that its Board of Directors has approved a share buyback 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 buy shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.
In other Fortune Brands Home & Security news, Director Ronald V. Waters sold 5,000 shares of the business’s stock in a transaction dated Friday, January 5th. The stock was sold at an average price of $71.50, for a total transaction of $357,500.00. Following the transaction, the director now owns 21,674 shares in the company, valued at $1,549,691. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Christopher J. Klein sold 85,000 shares of the business’s stock in a transaction dated Friday, October 27th. The stock was sold at an average price of $67.13, for a total value of $5,706,050.00. The disclosure for this sale can be found here. Insiders own 1.61% of the company’s stock.
Institutional investors and hedge funds have recently modified their holdings of the business. Acrospire Investment Management LLC lifted its stake in shares of Fortune Brands Home & Security by 60.0% in the second quarter. Acrospire Investment Management LLC now owns 1,600 shares of the industrial products company’s stock worth $104,000 after acquiring an additional 600 shares in the last quarter. Chicago Partners Investment Group LLC acquired a new position in shares of Fortune Brands Home & Security in the third quarter worth about $117,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Fortune Brands Home & Security by 1.2% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,884 shares of the industrial products company’s stock worth $123,000 after acquiring an additional 23 shares in the last quarter. Stephens Inc. AR acquired a new position in shares of Fortune Brands Home & Security in the second quarter worth about $201,000. Finally, First Midwest Bank Trust Division acquired a new position in shares of Fortune Brands Home & Security in the third quarter worth about $209,000. Institutional investors own 87.27% of the company’s stock.
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About Fortune Brands Home & Security
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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