Barclays Has Lowered Expectations for Fortune Brands Innovations (NYSE:FBIN) Stock Price

Key Points

• Barclays cut its price target on Fortune Brands Innovations from $47 to $40 and maintained an “equal weight” rating, implying 15.6% downside from the prior close.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and an average target of $51.27, while individual targets range from $40 to $68.
• Quarterly results were mixed: reported EPS of $1.14 topped the $0.74 estimate, but revenue of $1.11 billion missed expectations and fell 3.1% year over year.

Fortune Brands Innovations (NYSE:FBIN - Get Free Report) had its price target decreased by Barclays from $47.00 to $40.00 in a research report issued on Wednesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Barclays's target price points to a potential downside of 15.59% from the company's previous close.

Other analysts have also issued research reports about the stock. BMO Capital Markets lifted their price objective on shares of Fortune Brands Innovations from $50.00 to $53.00 and gave the company a "market perform" rating in a research note on Tuesday, July 28th. DA Davidson set a $58.00 price objective on Fortune Brands Innovations in a report on Wednesday. UBS Group upped their target price on Fortune Brands Innovations from $63.00 to $65.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Evercore set a $45.00 target price on Fortune Brands Innovations in a research note on Friday, September 25th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $68.00 price target on shares of Fortune Brands Innovations in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $51.27.

Fortune Brands Innovations Trading Up 3.3%

Shares of NYSE FBIN traded up $1.50 on Wednesday, reaching $47.39. 5,821,636 shares of the company traded hands, compared to its average volume of 2,633,879. Fortune Brands Innovations has a fifty-two week low of $32.34 and a fifty-two week high of $64.84. The company has a 50 day moving average of $41.19 and a 200 day moving average of $45.15. The company has a current ratio of 2.01, a quick ratio of 1.05 and a debt-to-equity ratio of 1.11. The stock has a market capitalization of $5.66 billion, a PE ratio of 38.61, a P/E/G ratio of 2.30 and a beta of 1.25.

Fortune Brands Innovations (NYSE:FBIN - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $1.14 EPS for the quarter, topping the consensus estimate of $0.74 by $0.40. Fortune Brands Innovations had a return on equity of 19.50% and a net margin of 3.39%. The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.12 billion. During the same period in the prior year, the firm posted $1.09 earnings per share. The firm's revenue was down 3.1% on a year-over-year basis. On average, equities research analysts forecast that Fortune Brands Innovations will post 3.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Jesse Singh bought 19,725 shares of the firm's stock in a transaction dated Thursday, August 6th. The stock was bought at an average price of $51.66 per share, for a total transaction of $1,018,993.50. Following the transaction, the chief executive officer owned 19,725 shares in the company, valued at $1,018,993.50. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. 3.32% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Fortune Brands Innovations

A number of hedge funds have recently added to or reduced their stakes in FBIN. BlackRock Inc. bought a new position in shares of Fortune Brands Innovations in the second quarter valued at $1,062,255,000. Dimensional Fund Advisors LP lifted its position in shares of Fortune Brands Innovations by 7.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,064,086 shares of the company's stock valued at $158,362,000 after acquiring an additional 271,371 shares during the last quarter. Garden Investment Management L.P. bought a new stake in shares of Fortune Brands Innovations during the 1st quarter worth $137,471,000. Freestone Grove Partners LP acquired a new stake in shares of Fortune Brands Innovations during the second quarter worth $136,063,000. Finally, Atlas FRM LLC acquired a new stake in shares of Fortune Brands Innovations during the second quarter worth $100,192,500. Institutional investors and hedge funds own 87.60% of the company's stock.

Key Fortune Brands Innovations News

Here are the key news stories impacting Fortune Brands Innovations this week:

• Positive Sentiment: Wells Fargo raised its price target to $51 from $48 and reiterated an “overweight” rating, implying roughly 7.5% upside from the cited share price. Wells Fargo rating information
• Neutral Sentiment: The company appointed Morgan Fox as executive vice president, chief legal officer and corporate secretary, effective December 2. The leadership change is not expected to have an immediate financial impact. Appointment announcement
• Negative Sentiment: Q3 results were weaker year over year: Zacks reported EPS of $0.72, below its $0.75 consensus estimate and down from $1.09 a year earlier. Revenue of $1.11 billion also missed estimates of $1.12 billion and declined 3.1% year over year. The company said results were in line with its outlook excluding tax and tariff benefits, and described its performance plan as an early-stage turnaround. Q3 earnings coverage Company Q3 results announcement
• Negative Sentiment: Other target revisions were more cautious: RBC cut its target to $48 from $49 while keeping an “outperform” rating, and Truist lowered its target to $60 from $70 despite retaining a “buy” rating. RBC target update Truist target update

Fortune Brands Innovations Company Profile

Fortune Brands Innovations, Inc is a manufacturer and marketer of products used in residential construction, remodeling and commercial applications. The company operates through businesses focused on water management, outdoor living and home safety and security.

Its portfolio includes plumbing products under brands such as Moen and House of Rohl; doors and related products marketed through Therma-Tru; composite decking and outdoor-living products from Fiberon; and locks, safes and security products sold under Master Lock and SentrySafe.

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