Floor & Decor (FND) Given a $45.00 Price Target by Wells Fargo & Co Analysts
“We continue to view FND among the best in class growth stories in all of retail, with considerable white space, a differentiated store concept, and ecommerce defense, but with the likely benefits of tax reform pricing in and a potential secondary offering looming, valuation discipline drives our Market Perform rating as we await a better entry point. Comps well exceed estimates; Giving our model a slight remodel; Raising PT to $45. While FND does not anticipate comps to remain at the current level in FY18, execution has been strong since the company’s IPO (and prior to), with 21 consecutive quarters of +DD comp growth. To reflect this morning’s preannouncement, we are raising our Q4 EPS estimate by 2c to 18c (or the high-end of mgmt.’s 17-18c guide). For FY17/18, we are raising our adjusted EPS estimates by 1c/7c to 67/87c. Our estimates do not reflect the benefits of tax reform, but our preliminary analysis points to accretion of nearly 20% absent reinvestment.”,” the firm’s analyst wrote.
Several other equities analysts have also commented on FND. BMO Capital Markets initiated coverage on shares of Floor & Decor in a research note on Thursday, September 14th. They issued a market perform rating and a $41.00 price target on the stock. Piper Jaffray Companies restated a hold rating and set a $42.00 target price on shares of Floor & Decor in a research report on Thursday, October 12th. Zacks Investment Research upgraded shares of Floor & Decor from a hold rating to a buy rating and set a $46.00 target price on the stock in a research report on Monday, November 6th. Jefferies Group raised their target price on shares of Floor & Decor from $38.00 to $42.00 and gave the stock a hold rating in a research report on Friday, November 3rd. Finally, JPMorgan Chase & Co. initiated coverage on shares of Floor & Decor in a research report on Monday, October 16th. They set an overweight rating and a $46.00 target price on the stock. Seven investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average target price of $45.13.
Floor & Decor (NYSE:FND) last announced its quarterly earnings results on Thursday, November 2nd. The company reported $0.17 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.14 by $0.03. The company had revenue of $343.90 million for the quarter, compared to analyst estimates of $338.62 million. Floor & Decor had a net margin of 5.62% and a return on equity of 26.39%. The firm’s revenue was up 26.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.12 earnings per share. sell-side analysts predict that Floor & Decor will post 0.66 earnings per share for the current year.
In other news, CEO Thomas V. Taylor sold 155,392 shares of Floor & Decor stock in a transaction on Wednesday, December 27th. The stock was sold at an average price of $45.71, for a total transaction of $7,102,968.32. Following the completion of the transaction, the chief executive officer now owns 24,726 shares of the company’s stock, valued at approximately $1,130,225.46. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Thomas V. Taylor sold 20,207 shares of Floor & Decor stock in a transaction on Friday, December 22nd. The stock was sold at an average price of $45.07, for a total value of $910,729.49. Following the transaction, the chief executive officer now directly owns 24,726 shares of the company’s stock, valued at approximately $1,114,400.82. The disclosure for this sale can be found here. In the last three months, insiders sold 5,647,246 shares of company stock valued at $201,948,218.
Several large investors have recently added to or reduced their stakes in the company. Ares Management LLC purchased a new stake in Floor & Decor during the 2nd quarter worth about $2,049,069,000. FS Capital Partners VI LLC purchased a new stake in Floor & Decor during the 2nd quarter worth about $993,798,000. Gilder Gagnon Howe & Co. LLC increased its position in Floor & Decor by 30.8% during the 3rd quarter. Gilder Gagnon Howe & Co. LLC now owns 2,644,866 shares of the company’s stock worth $102,965,000 after purchasing an additional 622,703 shares in the last quarter. TimesSquare Capital Management LLC increased its position in Floor & Decor by 1,007.3% during the 3rd quarter. TimesSquare Capital Management LLC now owns 1,660,900 shares of the company’s stock worth $64,659,000 after purchasing an additional 1,510,900 shares in the last quarter. Finally, Vanguard Group Inc. purchased a new stake in Floor & Decor during the 2nd quarter worth about $32,590,000. 93.49% of the stock is owned by institutional investors and hedge funds.
About Floor & Decor
Floor & Decor Holdings, Inc, formerly FDO Holdings, Inc, is a retailer of hard surface flooring and related accessories. The Company retails its products such as tile, stone, wood, marble, glass and decoratives. The Company has 72 stores across 17 states in the United States. The Company provides its products to customers, including professional installers and commercial businesses (Pro), Do it Yourself customers (DIY) and customers who buy the products for professional installation (Buy it Yourself or BIY).
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