Five Below (NASDAQ:FIVE) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Five Below from “strong buy” to “hold.” Despite the move, analysts overall maintain a “Moderate Buy” consensus, with an average price target of $300.20.
• Five Below reported quarterly EPS of $1.68, beating the $1.40 consensus, while revenue of $1.26 billion exceeded expectations and rose 22.9% year over year.
• The stock opened at $236.19 and was down 1.2% in Monday trading; its 12-month range is $143.02 to $263.88.

Five Below (NASDAQ:FIVE - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday, Zacks reports.

Several other research analysts also recently commented on FIVE. Weiss Ratings raised Five Below from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 29th. The Goldman Sachs Group restated a "buy" rating and issued a $306.00 price target on shares of Five Below in a report on Friday, September 25th. JPMorgan Chase & Co. upped their target price on Five Below from $325.00 to $368.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. Morgan Stanley upped their target price on shares of Five Below from $235.00 to $300.00 and gave the stock an "equal weight" rating in a report on Thursday, September 3rd. Finally, Loop Capital cut Five Below from a "buy" rating to a "hold" rating and set a $250.00 price objective on the stock. in a research note on Tuesday, August 25th. Nineteen investment analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $300.20.

Five Below Trading Down 1.2%

Five Below stock opened at $236.19 on Monday. The stock's 50 day moving average is $231.86 and its 200-day moving average is $217.95. Five Below has a 12 month low of $143.02 and a 12 month high of $263.88. The company has a market capitalization of $13.00 billion, a price-to-earnings ratio of 21.20, a PEG ratio of 0.92 and a beta of 0.90.

Five Below (NASDAQ:FIVE - Get Free Report) last announced its quarterly earnings data 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. Five Below had a return on equity of 22.13% and a net margin of 11.65%. The firm had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the previous year, the firm earned $0.81 EPS. The company's quarterly revenue was up 22.9% compared to the same quarter last year. 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. As a group, equities research analysts predict that Five Below will post 10.51 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Maureen Gellerman sold 1,610 shares of the stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $248.94, for a total value of $400,793.40. Following the sale, the insider owned 8,804 shares in the company, valued at approximately $2,191,667.76. This trade represents a 15.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Kenneth R. Bull sold 10,510 shares of Five Below stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $248.06, for a total value of $2,607,110.60. Following the sale, the chief operating officer owned 75,064 shares of the company's stock, valued at approximately $18,620,375.84. This trade represents a 12.28% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 18,438 shares of company stock valued at $4,580,933. Corporate insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On Five Below

A number of hedge funds and other institutional investors have recently bought and sold shares of FIVE. Brighton Jones LLC grew its stake in shares of Five Below by 14.6% in the third quarter. Brighton Jones LLC now owns 9,039 shares of the specialty retailer's stock worth $1,985,000 after purchasing an additional 1,153 shares during the last quarter. Ethic Inc. bought a new position in Five Below during the 3rd quarter valued at approximately $373,000. AlphaCentric Advisors LLC raised its position in Five Below by 7.6% during the 3rd quarter. AlphaCentric Advisors LLC now owns 634 shares of the specialty retailer's stock valued at $139,000 after purchasing an additional 45 shares during the last quarter. Ashton Thomas Private Wealth LLC purchased a new stake in Five Below in the 3rd quarter worth approximately $239,000. Finally, Allegiance Financial Group Advisory Services LLC purchased a new stake in Five Below in the 3rd quarter worth approximately $308,000.

Five Below Company Profile

Five Below, Inc is a specialty value retailer that sells merchandise aimed primarily at children, teenagers and young adults. Its product assortment includes technology accessories, toys and games, sports and recreation items, room décor, fashion and beauty products, party supplies, arts and crafts, and candy. The company emphasizes trend-driven products at low prices, with most items historically priced between $1 and $5 and a selection of higher-priced “Five Beyond” merchandise.

Five Below operates stores across the United States and also sells products through its e-commerce platform.

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