Fortune Brands Home & Security (FBHS) Shares Down 7% After Analyst Downgrade

Fortune Brands Home & Security Inc (NYSE:FBHS) traded down 7% during mid-day trading on Friday after Barclays lowered their price target on the stock from $71.00 to $70.00. Barclays currently has an equal weight rating on the stock. Fortune Brands Home & Security traded as low as $64.29 and last traded at $64.90. 4,064,665 shares traded hands during trading, an increase of 247% from the average session volume of 1,172,503 shares. The stock had previously closed at $69.82.

Several other equities research analysts have also issued reports on the stock. Nomura lowered their target price on shares of Fortune Brands Home & Security from $78.00 to $74.00 and set a “neutral” rating on the stock in a research note on Friday. Zacks Investment Research lowered shares of Fortune Brands Home & Security from a “buy” rating to a “hold” rating in a research note on Wednesday. Credit Suisse Group reissued an “outperform” rating and set a $80.00 target price (up from $74.00) on shares of Fortune Brands Home & Security in a research note on Monday, January 22nd. They noted that the move was a valuation call. Royal Bank of Canada lowered their target price on shares of Fortune Brands Home & Security from $78.00 to $74.00 and set an “outperform” rating on the stock in a research note on Monday, November 13th. Finally, SunTrust Banks reissued a “hold” rating and set a $63.00 target price on shares of Fortune Brands Home & Security in a research note on Friday, November 10th. 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 stock. The stock has a consensus rating of “Hold” and a consensus price target of $73.25.

In related news, Director Ronald V. Waters sold 5,000 shares of the firm’s stock in a transaction dated Friday, January 5th. The shares were sold at an average price of $71.50, for a total value of $357,500.00. Following the transaction, the director now directly owns 21,674 shares of the company’s stock, valued at approximately $1,549,691. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.61% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the business. American Century Companies Inc. raised its holdings in Fortune Brands Home & Security by 1.6% in the 3rd quarter. American Century Companies Inc. now owns 4,232,353 shares of the industrial products company’s stock valued at $284,541,000 after acquiring an additional 64,987 shares during the last quarter. Pictet Asset Management Ltd. raised its holdings in Fortune Brands Home & Security by 1.7% in the 3rd quarter. Pictet Asset Management Ltd. now owns 2,542,640 shares of the industrial products company’s stock valued at $170,942,000 after acquiring an additional 42,421 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in Fortune Brands Home & Security by 1.9% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,391,493 shares of the industrial products company’s stock valued at $93,550,000 after acquiring an additional 25,514 shares during the last quarter. Epoch Investment Partners Inc. acquired a new stake in Fortune Brands Home & Security in the 3rd quarter valued at about $84,149,000. Finally, Schroder Investment Management Group raised its holdings in Fortune Brands Home & Security by 4.7% in the 3rd quarter. Schroder Investment Management Group now owns 1,192,031 shares of the industrial products company’s stock valued at $80,176,000 after acquiring an additional 53,419 shares during the last quarter. Institutional investors own 87.38% of the company’s stock.

The firm has a market capitalization of $10,598.73, a price-to-earnings ratio of 21.21, a P/E/G ratio of 1.90 and a beta of 1.33. The company has a current ratio of 1.87, a quick ratio of 1.17 and a debt-to-equity ratio of 0.57.

Fortune Brands Home & Security (NYSE:FBHS) last released its quarterly earnings data on Thursday, February 1st. The industrial products company reported $0.80 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.80. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.39 billion. Fortune Brands Home & Security had a net margin of 8.95% and a return on equity of 18.89%. Fortune Brands Home & Security’s quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.71 EPS. equities analysts anticipate that Fortune Brands Home & Security Inc will post 3.52 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 14th. Shareholders of record on Friday, February 23rd will be issued a $0.20 dividend. This is an increase from Fortune Brands Home & Security’s previous quarterly dividend of $0.18. The ex-dividend date is Thursday, February 22nd. This represents a $0.80 dividend on an annualized basis and a yield of 1.23%. Fortune Brands Home & Security’s dividend payout ratio is presently 23.53%.

Fortune Brands Home & Security announced that its Board of Directors has initiated a share buyback program on Monday, December 11th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the industrial products company to reacquire shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

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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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