Floor & Decor Holdings Inc. (NYSE: FND) stock fell -2.40% on Friday to $73.54 against a previous-day closing price of $75.35. With 2.2 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.44 million shares. During the session, the Home Improvement Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $77.48 whereas the lowest price it dropped to was $73.50. The 52-week range on FND shows that it touched its highest point at $145.89 and its lowest point at $59.91 during that stretch. It currently has a 1-year price target of $99.68. Beta for the stock currently stands at 1.82.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FND was down-trending over the past week, with a drop of -9.06%, but this was down by -16.03% over a month. Three-month performance surged to 14.49% while six-month performance fell -25.34%. The stock lost -41.62% in the past year, while it has lost -43.44% so far this year. A look at the trailing 12-month EPS for FND yields 2.59 with Next year EPS estimates of 3.38. For the next quarter, that number is 0.65. This implies an EPS growth rate of 43.60% for this year and 24.56% for next year. EPS is expected to grow by 23.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 41.40%.
Float and Shares Shorts:
At present, 105.55 million FND shares are outstanding with a float of 104.06 million shares on hand for trading. On Aug 30, 2022, short shares totaled 8.21 million, which was 7.75% higher than short shares on Jul 28, 2022. In addition to Mr. Thomas V. Taylor Jr. as the firm’s CEO & Director, Mr. Trevor S. Lang serves as its Exec. VP & CFO.
Through their ownership of 105.26% of FND’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.70% of FND, in contrast to 48.21% held by mutual funds. Shares owned by individuals account for 12.80%. As the largest shareholder in FND with 12.23% of the stake, Capital Research & Management Co holds 12,971,202 shares worth 12,971,202. A second-largest stockholder of FND, The Vanguard Group, Inc., holds 8,894,751 shares, controlling over 8.39% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in FND, holding 6,870,442 shares or 6.48% stake. With a 4.38% stake in FND, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 4,648,434 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 3.82% of FND stock, is the second-largest Mutual Fund holder. It holds 4,046,400 shares valued at 329.22 million. Vanguard Total Stock Market Index holds 2.82% of the stake in FND, owning 2,990,547 shares worth 243.31 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, FND reported revenue of $1.09B and operating income of $106.41M. Over the past year, revenue came in at $3.91B while operating income stood at $344.87M. It generated $81.83M net income for the quarter, which came to $277.30M over the last twelve months. The EBITDA in the recently reported quarter was $144.36M and diluted EPS was $0.76. EBITDA for the full year was $481.53M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FND since 20 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FND analysts setting a high price target of $112.00 and a low target of $65.00, the average target price over the next 12 months is $97.05. Based on these targets, FND could surge 52.3% to reach the target high and fall by -11.61% to reach the target low. Reaching the average price target will result in a growth of 31.97% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FND will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $2.83 being high and $2.60 being low. For FND, this leads to a yearly average estimate of $2.73. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Floor & Decor Holdings Inc. surprised analysts by $0.03 when it reported $0.76 EPS against a consensus estimate of $0.73. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.72 and the low estimate is $0.62. The average estimate for the next quarter is thus $0.66.
Summary of Insider Activity:
Insiders traded FND stock several times over the past three months with 5 Buys and 2 Sells. In these transactions, 6,714 shares were bought while 6,028 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 104,507 while 60,115 shares were sold.