A History of Outperforming Analyst Forecasts and Beating the Odds: 1-800-FLOWERS.COM Inc. (FLWS)

1-800-FLOWERS.COM Inc. (NASDAQ: FLWS) stock fell -0.43% on Monday to $9.32 against a previous-day closing price of $9.36. With 0.38 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.62 million shares. During the session, the Specialty Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $9.56 whereas the lowest price it dropped to was $9.18. The 52-week range on FLWS shows that it touched its highest point at $22.98 and its lowest point at $5.82 during that stretch. It currently has a 1-year price target of $11.20. Beta for the stock currently stands at 1.61.

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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 FLWS was down-trending over the past week, with a drop of -10.64%, but this was up by 2.76% over a month. Three-month performance surged to 45.40% while six-month performance fell -12.32%. The stock lost -58.07% in the past year, while it has lost -2.51% so far this year. A look at the trailing 12-month EPS for FLWS yields 0.12 with Next year EPS estimates of 0.40. For the next quarter, that number is 0.95. This implies an EPS growth rate of -74.70% for this year and 538.71% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -7.00%.

Float and Shares Shorts:

At present, 64.54 million FLWS shares are outstanding with a float of 23.35 million shares on hand for trading. On Dec 29, 2022, short shares totaled 1.66 million, which was 2.57% higher than short shares on Nov 29, 2022. In addition to Mr. James Francis McCann as the firm’s Founder & Exec. Chairman, Mr. Christopher G. McCann serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 64.05% of FLWS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.79% of FLWS, in contrast to 34.31% held by mutual funds. Shares owned by individuals account for 32.53%. As the largest shareholder in FLWS with 5.93% of the stake, BlackRock Fund Advisors holds 2,215,414 shares worth 2,215,414. A second-largest stockholder of FLWS, Aristotle Capital Boston LLC, holds 1,685,247 shares, controlling over 4.51% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in FLWS, holding 1,369,440 shares or 3.66% stake. With a 2.75% stake in FLWS, the British Columbia Inv Management C is the largest stakeholder. A total of 1,027,905 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.19% of FLWS stock, is the second-largest Mutual Fund holder. It holds 819,124 shares valued at 7.83 million. 1290 VT GAMCO Small Company Value holds 1.66% of the stake in FLWS, owning 620,000 shares worth 5.93 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 Oct 01, 2022, FLWS reported revenue of $485.89M and operating income of -$27.05M. The EBITDA in the recently reported quarter was -$18.60M and diluted EPS was -$0.34.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FLWS since 5 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 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 FLWS analysts setting a high price target of $13.00 and a low target of $9.00, the average target price over the next 12 months is $11.20. Based on these targets, FLWS could surge 39.48% to reach the target high and fall by -3.43% to reach the target low. Reaching the average price target will result in a growth of 20.17% 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. FLWS will report FY 2023 earnings on 08/24/2023. Analysts have provided yearly estimates in a range of $0.15 being high and -$0.01 being low. For FLWS, this leads to a yearly average estimate of $0.06. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. 1-800-FLOWERS.COM Inc. surprised analysts by $0.03 when it reported -$0.52 EPS against a consensus estimate of -$0.55. The surprise factor in the prior quarter was -$0.09. Based on analyst estimates, the high estimate for the next quarter is $1.06 and the low estimate is $0.76. The average estimate for the next quarter is thus $0.97.

Summary of Insider Activity:

Insiders traded FLWS stock several times over the past three months with 17 Buys and 14 Sells. In these transactions, 260,609 shares were bought while 79,934 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 393,083 while 82,465 shares were sold.

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