Zacks Investment Research cut shares of Five Below, Inc. (NASDAQ:FIVE) from a buy rating to a hold rating in a research note issued to investors on Tuesday.

According to Zacks, “Five Below has surpassed the industry so far in the year, backed by its robust strategies that have been driving the company’s spectacular past record. The company’s impressive merchandise assortment, focus on pre-teen customers and favorable pricing strategy help it stand strong amid a tough retail landscape. Also, the company remains focused on expanding its store base and targets a network of 2,000 stores by 2020. Notably, these strategic endeavors to boost margins fueled Five Below’s second-quarter fiscal 2017 results. Concurrent to which the company raised its sales and earnings view. While the top and bottom lines marked their third and eighth straight quarter of positive surprise respectively, the company witnessed its highest quarter of comps growth. However, stiff competition from both brick-&-mortar and e-retailers remains a concern. Five Below’s seasonal nature of business also seems to be a hurdle.”

A number of other brokerages also recently commented on FIVE. Wells Fargo & Company began coverage on Five Below in a research note on Friday, November 3rd. They issued an outperform rating and a $65.00 target price for the company. BidaskClub upgraded Five Below from a buy rating to a strong-buy rating in a research note on Thursday, September 28th. Jefferies Group LLC restated a buy rating and issued a $52.00 target price on shares of Five Below in a research note on Tuesday, September 12th. Loop Capital set a $60.00 target price on Five Below and gave the company a buy rating in a research note on Monday, August 28th. Finally, Deutsche Bank AG restated a hold rating and issued a $54.00 target price (up from $53.00) on shares of Five Below in a research note on Thursday, August 31st. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of Buy and a consensus price target of $55.66.

Shares of Five Below (FIVE) traded up $0.14 during mid-day trading on Tuesday, reaching $57.53. The company’s stock had a trading volume of 420,400 shares, compared to its average volume of 1,085,984. Five Below has a 12 month low of $36.90 and a 12 month high of $58.34. The firm has a market capitalization of $3,167.91, a P/E ratio of 39.58, a P/E/G ratio of 1.21 and a beta of 0.80.

Five Below (NASDAQ:FIVE) last issued its earnings results on Wednesday, August 30th. The specialty retailer reported $0.30 EPS for the quarter, beating the Zacks’ consensus estimate of $0.26 by $0.04. Five Below had a return on equity of 24.37% and a net margin of 7.29%. The company had revenue of $283.30 million during the quarter, compared to the consensus estimate of $276.37 million. During the same period in the previous year, the firm posted $0.18 earnings per share. Five Below’s quarterly revenue was up 28.7% compared to the same quarter last year. analysts forecast that Five Below will post 1.66 EPS for the current year.

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In related news, insider Thomas Vellios sold 142,573 shares of the business’s stock in a transaction that occurred on Monday, October 2nd. The stock was sold at an average price of $55.13, for a total transaction of $7,860,049.49. Following the sale, the insider now owns 757,823 shares of the company’s stock, valued at $41,778,781.99. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 3.22% of the stock is owned by insiders.

Large investors have recently made changes to their positions in the stock. Schwab Charles Investment Management Inc. raised its holdings in Five Below by 9.9% during the first quarter. Schwab Charles Investment Management Inc. now owns 278,012 shares of the specialty retailer’s stock worth $12,041,000 after purchasing an additional 25,041 shares in the last quarter. Legal & General Group Plc raised its holdings in Five Below by 11.7% during the second quarter. Legal & General Group Plc now owns 106,198 shares of the specialty retailer’s stock worth $5,239,000 after purchasing an additional 11,110 shares in the last quarter. Prudential Financial Inc. raised its holdings in Five Below by 82.4% during the second quarter. Prudential Financial Inc. now owns 175,930 shares of the specialty retailer’s stock worth $8,685,000 after purchasing an additional 79,480 shares in the last quarter. Quantitative Systematic Strategies LLC raised its holdings in Five Below by 91.4% during the second quarter. Quantitative Systematic Strategies LLC now owns 11,695 shares of the specialty retailer’s stock worth $562,000 after purchasing an additional 5,584 shares in the last quarter. Finally, Macquarie Group Ltd. raised its holdings in Five Below by 42.2% during the second quarter. Macquarie Group Ltd. now owns 776,034 shares of the specialty retailer’s stock worth $38,313,000 after purchasing an additional 230,191 shares in the last quarter.

About Five Below

Five Below, Inc is a specialty retailer offering a range of merchandise for teen and pre-teen customer. The Company offers an assortment of products, including select brands and licensed merchandise across a range of categories, including Style, Room, Sports, Tech, Crafts, Party, Candy and Now. Its product groups include leisure, fashion and home, and party and snack.

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Analyst Recommendations for Five Below (NASDAQ:FIVE)

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