Fortune Brands Home & Security (FBHS) Stock Rating Upgraded by Zacks Investment Research

Fortune Brands Home & Security (NYSE:FBHS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Thursday, January 11th. The firm currently has a $77.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s price target points to a potential upside of 18.64% from the stock’s previous close.

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.”

FBHS has been the subject of a number of other reports. BidaskClub upgraded shares of Fortune Brands Home & Security from a “sell” rating to a “hold” rating in a research report on Tuesday, September 26th. Royal Bank of Canada restated a “buy” rating and issued a $75.00 price objective on shares of Fortune Brands Home & Security in a research report on Monday, September 25th. Robert W. Baird restated a “buy” rating and issued a $72.00 price objective on shares of Fortune Brands Home & Security in a research report on Tuesday, October 24th. JPMorgan Chase & Co. raised their price objective on shares of 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 lifted their target price on shares of 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, seven have assigned a hold rating and six have issued a buy rating to the company. Fortune Brands Home & Security presently has a consensus rating of “Hold” and a consensus price target of $73.25.

Shares of Fortune Brands Home & Security (FBHS) traded down $4.92 during trading hours on Thursday, reaching $64.90. 4,064,665 shares of the company’s stock were exchanged, compared to its average volume of 942,665. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.87 and a quick ratio of 1.17. The company has a market capitalization of $9,850.00, a price-to-earnings ratio of 21.28, a PEG ratio of 1.93 and a beta of 1.33. Fortune Brands Home & Security has a 12-month low of $55.14 and a 12-month high of $73.62.

Fortune Brands Home & Security (NYSE:FBHS) last issued its earnings results on Monday, January 29th. The industrial products company reported $0.80 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.80. Fortune Brands Home & Security had a net margin of 8.62% and a return on equity of 18.64%. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same quarter last year, the business earned $0.71 earnings per share. The company’s quarterly revenue was up 6.2% on a year-over-year basis. sell-side analysts expect that Fortune Brands Home & Security will post 3.07 EPS for the current year.

Fortune Brands Home & Security declared that its board has approved a stock repurchase program on Monday, December 11th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the industrial products company to purchase shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

In other Fortune Brands Home & Security news, Director Ronald V. Waters sold 5,000 shares of Fortune Brands Home & Security stock in a transaction that occurred on Friday, January 5th. The shares were sold at an average price of $71.50, for a total transaction of $357,500.00. Following the transaction, the director now directly owns 21,674 shares of the company’s stock, valued at $1,549,691. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.61% of the company’s stock.

Hedge funds have recently bought and sold shares of the business. Sentry Investment Management LLC raised its stake in shares of Fortune Brands Home & Security by 1.2% during the second quarter. Sentry Investment Management LLC now owns 10,287 shares of the industrial products company’s stock worth $671,000 after acquiring an additional 122 shares in the last quarter. Toronto Dominion Bank increased its stake in shares of Fortune Brands Home & Security by 26.1% in the second quarter. Toronto Dominion Bank now owns 52,123 shares of the industrial products company’s stock worth $3,400,000 after buying an additional 10,799 shares during the period. Douglas Lane & Associates LLC increased its stake in shares of Fortune Brands Home & Security by 3.1% in the third quarter. Douglas Lane & Associates LLC now owns 675,602 shares of the industrial products company’s stock worth $45,421,000 after buying an additional 20,460 shares during the period. Envestnet Asset Management Inc. increased its stake in shares of Fortune Brands Home & Security by 49.7% in the third quarter. Envestnet Asset Management Inc. now owns 17,669 shares of the industrial products company’s stock worth $1,189,000 after buying an additional 5,863 shares during the period. Finally, Amalgamated Bank increased its stake in shares of Fortune Brands Home & Security by 25.8% in the second quarter. Amalgamated Bank now owns 31,168 shares of the industrial products company’s stock worth $2,033,000 after buying an additional 6,401 shares during the period. 87.38% of the stock is currently owned by hedge funds and other institutional investors.

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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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