Zacks Investment Research Downgrades Interface (TILE) to Sell

Zacks Investment Research lowered shares of Interface (NASDAQ:TILE) from a hold rating to a sell rating in a research note published on Thursday morning, Zacks.com reports.

According to Zacks, “Interface, Inc. is the world’s largest manufacturer of modular carpet, which it markets under the Interface and FLOR brands. The Company is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value. Interface is the world’s largest manufacturer of modular carpet. Their heritage began with the invention of the first carpet tile approximately 50 years ago by a Dutch company called Heuga, now part of InterfaceFLOR. From that spark of invention, they have continued to innovate, giving the award-winning modular carpet design, pioneering environmental practices and ground-breaking manufacturing technology. Their products are designed for a wide range of commercial environments including corporate, healthcare, education, retail, hospitality and government. We continue to lead the industry in environmental achievement and the exploration of environmentally efficient products and processes. “

A number of other brokerages have also recently weighed in on TILE. Nomura reduced their price target on shares of Interface from $26.00 to $24.00 and set a buy rating for the company in a research report on Monday, January 7th. BidaskClub cut shares of Interface from a hold rating to a sell rating in a research report on Tuesday, March 12th. Three equities research analysts have rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating to the company. The company has a consensus rating of Hold and an average price target of $25.00.

Interface stock opened at $15.65 on Thursday. The firm has a market cap of $930.44 million, a PE ratio of 10.50 and a beta of 1.57. Interface has a 12-month low of $13.45 and a 12-month high of $24.55. The company has a debt-to-equity ratio of 1.75, a current ratio of 2.43 and a quick ratio of 1.34.

Interface (NASDAQ:TILE) last released its quarterly earnings data on Wednesday, April 24th. The textile maker reported $0.14 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.11 by $0.03. The business had revenue of $298.00 million during the quarter, compared to analysts’ expectations of $300.16 million. Interface had a net margin of 3.41% and a return on equity of 23.53%. The company’s revenue for the quarter was up 23.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.25 EPS. As a group, sell-side analysts forecast that Interface will post 1.61 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, May 24th. Investors of record on Friday, May 10th will be given a $0.065 dividend. The ex-dividend date is Thursday, May 9th. This represents a $0.26 dividend on an annualized basis and a yield of 1.66%. Interface’s dividend payout ratio (DPR) is presently 17.45%.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Private Capital Group LLC lifted its position in Interface by 53.2% in the first quarter. Private Capital Group LLC now owns 3,032 shares of the textile maker’s stock valued at $46,000 after acquiring an additional 1,053 shares during the last quarter. Hanson & Doremus Investment Management acquired a new position in Interface in the first quarter valued at $47,000. Investors Research Corp acquired a new position in Interface in the first quarter valued at $142,000. Hsbc Holdings PLC acquired a new position in Interface in the fourth quarter valued at $164,000. Finally, Squarepoint Ops LLC acquired a new position in Interface in the fourth quarter valued at $191,000. 96.86% of the stock is owned by hedge funds and other institutional investors.

Interface Company Profile

Interface, Inc, a modular flooring company, designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. The company offers modular carpets under the Interface and FLOR names; carpet tiles under the GlasBacRE name for use in commercial interiors, including offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; modular resilient flooring products; rubber flooring under the norament and noraplan brands; and luxury vinyl tile products.

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