Zacks Investment Research lowered shares of Fortune Brands Home & Security (NYSE:FBHS) from a buy rating to a hold rating in a research report sent to investors on Friday morning, Zacks.com reports. They currently have $56.00 price target on the industrial products company’s stock.

According to Zacks, “Over the past three months, Fortune Brands’ shares have outperformed the industry. We believe that the company is poised to gain from its solid product portfolio, inorganic activities and shareholder-friendly policies in the long run. In addition, the company remains focused on strengthening its competency on the back of meaningful business acquisitions. Fortune Brands continues to anticipate both the U.S. home products market and the global market to grow 2-4% in 2019. For 2019, the company expects revenues to increase 6-7.5% on a year-over-year basis. However, the stock looks significantly overvalued compared with the industry. Also, an increase in cost of sales mainly due to tariffs can hurt its margins. Further, a highly leveraged balance sheet, can inflate financial obligations and hurt profitability.”

Other equities research analysts also recently issued research reports about the company. Credit Suisse Group boosted their price objective on Fortune Brands Home & Security from $49.00 to $53.00 and gave the company an outperform rating in a report on Monday, March 18th. Barclays downgraded Fortune Brands Home & Security from an equal weight rating to an underweight rating and cut their price objective for the company from $45.00 to $44.00 in a report on Thursday, April 11th. Bank of America upgraded Fortune Brands Home & Security from a neutral rating to a buy rating and boosted their price objective for the company from $55.00 to $64.00 in a report on Monday, May 6th. ValuEngine upgraded Fortune Brands Home & Security from a sell rating to a hold rating in a report on Monday, April 29th. Finally, Royal Bank of Canada boosted their price objective on Fortune Brands Home & Security to $56.00 and gave the company an outperform rating in a report on Thursday, April 25th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $53.90.

NYSE:FBHS opened at $54.01 on Friday. Fortune Brands Home & Security has a 52 week low of $35.27 and a 52 week high of $58.21. The company has a current ratio of 1.49, a quick ratio of 0.90 and a debt-to-equity ratio of 1.03. The firm has a market capitalization of $7.44 billion, a price-to-earnings ratio of 16.17, a price-to-earnings-growth ratio of 1.58 and a beta of 1.47.

Fortune Brands Home & Security (NYSE:FBHS) last posted its earnings results on Wednesday, April 24th. The industrial products company reported $0.63 EPS for the quarter, beating the Zacks’ consensus estimate of $0.59 by $0.04. Fortune Brands Home & Security had a return on equity of 22.33% and a net margin of 7.18%. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the previous year, the business earned $0.56 earnings per share. The company’s revenue for the quarter was up 5.8% on a year-over-year basis. On average, research analysts predict that Fortune Brands Home & Security will post 3.66 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 19th. Shareholders of record on Friday, May 31st will be issued a dividend of $0.22 per share. The ex-dividend date is Thursday, May 30th. This represents a $0.88 annualized dividend and a yield of 1.63%. Fortune Brands Home & Security’s dividend payout ratio (DPR) is 26.35%.

In other Fortune Brands Home & Security news, SVP Brian C. Lantz sold 2,192 shares of the company’s stock in a transaction dated Tuesday, April 30th. The stock was sold at an average price of $52.55, for a total transaction of $115,189.60. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider David Randich sold 20,000 shares of the company’s stock in a transaction dated Tuesday, April 30th. The stock was sold at an average price of $53.00, for a total value of $1,060,000.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 25,247 shares of company stock worth $1,338,571. 1.63% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Nomura Asset Management Co. Ltd. boosted its position in shares of Fortune Brands Home & Security by 0.8% during the 1st quarter. Nomura Asset Management Co. Ltd. now owns 24,722 shares of the industrial products company’s stock worth $1,177,000 after acquiring an additional 196 shares in the last quarter. Cornerstone Advisors Inc. boosted its position in shares of Fortune Brands Home & Security by 47.0% during the 1st quarter. Cornerstone Advisors Inc. now owns 638 shares of the industrial products company’s stock worth $30,000 after acquiring an additional 204 shares in the last quarter. ETF Managers Group LLC boosted its position in shares of Fortune Brands Home & Security by 10.9% during the 1st quarter. ETF Managers Group LLC now owns 2,451 shares of the industrial products company’s stock worth $117,000 after acquiring an additional 240 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in shares of Fortune Brands Home & Security by 6.8% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 3,920 shares of the industrial products company’s stock worth $187,000 after acquiring an additional 251 shares in the last quarter. Finally, Blair William & Co. IL boosted its position in shares of Fortune Brands Home & Security by 0.9% during the 1st quarter. Blair William & Co. IL now owns 32,061 shares of the industrial products company’s stock worth $1,526,000 after acquiring an additional 275 shares in the last quarter. Institutional investors own 87.13% of the company’s stock.

Fortune Brands Home & Security Company Profile

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 three segments: Cabinets, Plumbing, and Doors & 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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