According to Zacks, “In the past six months, Fortune Brands' shares have underperformed the industry. Rising cost of sales remains a concern for the company's gross margin. The company expects that continued material inflation, higher freight charges and integration costs associated with the Fiberon acquisition will weigh over its near-term profitability. It also expects inflation to adversely impact its business by about $55-$60 million in 2019. However, we believe that the company is poised to gain from its solid product portfolio, inorganic activities and shareholder-friendly policy in the long run. In addition, the company remains focussed in strengthening its competency on the back of meaningful business acquisitions. Further, the company is steadily improving its cash position with time. “
A number of other research analysts also recently issued reports on the company. Goldman Sachs Group upgraded Fortune Brands Home & Security from a “neutral” rating to a “buy” rating and set a $54.00 price objective for the company in a report on Sunday, December 9th. Credit Suisse Group set a $49.00 price objective on Fortune Brands Home & Security and gave the stock a “buy” rating in a report on Friday, January 11th. Loop Capital increased their price objective on Fortune Brands Home & Security to $44.00 and gave the stock a “hold” rating in a report on Friday, February 1st. Bank of America upgraded Fortune Brands Home & Security from an “underperform” rating to a “neutral” rating and set a $47.00 price objective for the company in a report on Friday, January 4th. Finally, Evercore ISI upgraded Fortune Brands Home & Security from an “in-line” rating to an “outperform” rating in a report on Monday, January 7th. One research analyst has rated the stock with a sell rating, eight have given a hold rating and five have issued a buy rating to the company’s stock. Fortune Brands Home & Security currently has a consensus rating of “Hold” and a consensus price target of $54.27.
Fortune Brands Home & Security (NYSE:FBHS) last announced its quarterly earnings results on Thursday, January 31st. The industrial products company reported $0.86 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.08). Fortune Brands Home & Security had a return on equity of 21.91% and a net margin of 7.10%. The business had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.46 billion. On average, equities analysts anticipate that Fortune Brands Home & Security will post 3.63 EPS for the current fiscal year.
In other Fortune Brands Home & Security news, VP Danny Luburic sold 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 12th. The stock was sold at an average price of $46.96, for a total value of $93,920.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 1.63% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in FBHS. Pinnacle Bank acquired a new stake in shares of Fortune Brands Home & Security in the fourth quarter valued at approximately $30,000. Capital Investment Advisory Services LLC acquired a new stake in shares of Fortune Brands Home & Security in the fourth quarter valued at approximately $32,000. JOYN Advisors Inc. lifted its position in shares of Fortune Brands Home & Security by 196.5% in the fourth quarter. JOYN Advisors Inc. now owns 836 shares of the industrial products company’s stock valued at $32,000 after buying an additional 554 shares during the last quarter. Doyle Wealth Management acquired a new stake in Fortune Brands Home & Security during the 4th quarter worth approximately $33,000. Finally, CSat Investment Advisory L.P. lifted its holdings in Fortune Brands Home & Security by 117.8% during the 4th quarter. CSat Investment Advisory L.P. now owns 1,076 shares of the industrial products company’s stock worth $41,000 after purchasing an additional 582 shares during the last quarter. 87.80% of the stock is owned by institutional investors.
About Fortune Brands Home & Security
Fortune Brands Home & Security, Inc, together with its subsidiaries, provides home and security products for residential home repair, remodeling, new construction, and security applications. It operates in four segments: Cabinets, Plumbing, Doors, and Security. The Cabinets segment manufactures custom, semi-custom, and stock cabinetry, as well as vanities for the kitchen, bath, and other parts of the home directly to kitchen and bath dealers, home centers, wholesalers, and builders in North America.
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