Five Below (NASDAQ:FIVE) Raised to “Buy” at Wall Street Zen

Five Below (NASDAQ:FIVE) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities research analysts have also recently weighed in on FIVE. Deutsche Bank Aktiengesellschaft set a $401.00 target price on Five Below in a report on Thursday, September 3rd. Craig Hallum restated a “buy” rating and set a $325.00 price target on shares of Five Below in a research note on Thursday, September 3rd. Susquehanna lowered shares of Five Below to a “neutral” rating in a research note on Tuesday, July 21st. Royal Bank Of Canada cut shares of Five Below to a “sector perform” rating in a report on Thursday, July 9th. Finally, The Goldman Sachs Group raised their target price on shares of Five Below from $257.00 to $306.00 and gave the company a “buy” rating in a research report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat.com, Five Below presently has an average rating of “Moderate Buy” and an average target price of $300.70.

Five Below Stock Performance

Shares of NASDAQ:FIVE opened at $234.14 on Friday. The firm has a market cap of $12.89 billion, a PE ratio of 21.02, a price-to-earnings-growth ratio of 0.90 and a beta of 0.99. The firm’s 50 day simple moving average is $230.47 and its 200-day simple moving average is $219.56. Five Below has a one year low of $137.77 and a one year high of $263.88.

Five Below (NASDAQ:FIVE) last posted its quarterly earnings results on Wednesday, September 2nd. The specialty retailer reported $1.68 earnings per share for the quarter, beating the consensus estimate of $1.40 by $0.28. The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.22 billion. Five Below had a net margin of 11.65% and a return on equity of 22.13%. The company’s revenue was up 22.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.81 earnings per share. Five Below has set its Q3 2026 guidance at 1.010-1.130 EPS and its FY 2026 guidance at 9.830-10.310 EPS. Equities research analysts predict that Five Below will post 10.51 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Maureen Gellerman sold 1,610 shares of the stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $248.94, for a total value of $400,793.40. Following the completion of the transaction, the insider directly owned 8,804 shares of the company’s stock, valued at $2,191,667.76. This trade represents a 15.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CMO Jacob Hawkins sold 818 shares of Five Below stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $248.88, for a total transaction of $203,583.84. Following the completion of the sale, the chief marketing officer owned 3,728 shares of the company’s stock, valued at $927,824.64. This trade represents a 17.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 18,438 shares of company stock worth $4,580,933 in the last three months. Insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in FIVE. BlackRock Inc. purchased a new stake in shares of Five Below during the second quarter valued at $964,867,000. Wellington Management Group LLP raised its stake in Five Below by 54.4% in the 2nd quarter. Wellington Management Group LLP now owns 1,811,650 shares of the specialty retailer’s stock worth $325,717,000 after acquiring an additional 638,049 shares during the last quarter. Geode Capital Management LLC lifted its position in Five Below by 5.2% during the 4th quarter. Geode Capital Management LLC now owns 1,090,973 shares of the specialty retailer’s stock worth $205,535,000 after acquiring an additional 53,808 shares during the period. Norges Bank acquired a new stake in Five Below during the 4th quarter worth about $182,786,000. Finally, Quantinno Capital Management LP grew its stake in Five Below by 49.4% during the 1st quarter. Quantinno Capital Management LP now owns 522,234 shares of the specialty retailer’s stock valued at $119,320,000 after purchasing an additional 172,626 shares during the last quarter.

Five Below News Roundup

Here are the key news stories impacting Five Below this week:

• Positive Sentiment: Five Below raised its fiscal 2026 outlook after a second-quarter earnings beat. Stronger customer traffic, improved margins and “newness” in its merchandise assortment helped lift the company’s earnings trajectory. FIVE raises 2026 outlook article
• Positive Sentiment: The latest quarterly results showed revenue up 22.9% year over year to $1.26 billion, while EPS of $1.68 exceeded the $1.40 consensus estimate. The results reinforce the view that traffic and profitability improvements are driving growth.
• Positive Sentiment: Zacks Research raised several future earnings forecasts, including FY2027 EPS to $10.12 from $8.94, FY2028 EPS to $11.49 from $9.79, and FY2029 EPS to $12.57 from $10.67. Higher long-term estimates support the bull case for FIVE. Five Below earnings forecast article
• Neutral Sentiment: Analysts see meaningful growth potential, but the stock trades at a premium valuation after its recent rally. Investors therefore require continued execution on traffic, margins and store expansion. FIVE valuation analysis
• Negative Sentiment: Insider selling could weigh on sentiment. Chief Accounting Officer Eric Specter sold 5,500 shares for approximately $1.37 million, while Chief Human Resources Officer Maureen Gellerman separately sold 1,610 shares for about $401,000. These transactions may encourage profit-taking concerns.
• Negative Sentiment: Some analysts caution that Five Below’s growth may not be sustainable over the long term, leaving the shares vulnerable if traffic or margin momentum slows.

About Five Below

Five Below, Inc is a specialty value retailer that sells merchandise primarily designed for children, teens and preteens. Its product assortment generally includes toys, games, fashion accessories, room décor, sports equipment, technology accessories, party supplies, seasonal items and candy. The company operates under a “five and beyond” pricing concept, offering most products at affordable price points while also selling selected higher-priced items.

Founded in 2002 by David Schlessinger and Tom Vellios, Five Below has expanded from its original store base into a nationwide retail chain.