Five Below (NASDAQ:FIVE) Stock Rating Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Five Below from “Buy” to “Hold.” Despite the cut, analysts overall maintain a “Moderate Buy” consensus, with an average price target of $300.20.
• Five Below reported stronger-than-expected quarterly results, with EPS of $1.68 versus the $1.40 consensus and revenue of $1.26 billion, up 22.9% year over year.
• The stock opened at $222.72, below its 52-week high of $263.88. Company insiders sold approximately $4.6 million of shares over the past 90 days.

Five Below (NASDAQ:FIVE - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Monday, Wall Street Zen reports.

FIVE has been the subject of a number of other research reports. Royal Bank Of Canada downgraded shares of Five Below to a "sector perform" rating in a report on Thursday, July 9th. Mizuho set a $295.00 price objective on shares of Five Below in a research report on Thursday, September 3rd. Jefferies Financial Group boosted their target price on shares of Five Below from $350.00 to $420.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. BMO Capital Markets started coverage on shares of Five Below in a research report on Tuesday, July 21st. They set an "outperform" rating for the company. Finally, Susquehanna downgraded shares of Five Below to a "neutral" rating in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and twelve have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Five Below presently has an average rating of "Moderate Buy" and an average target price of $300.20.

Five Below Price Performance

FIVE opened at $222.72 on Monday. The stock has a market cap of $12.26 billion, a PE ratio of 19.99, a price-to-earnings-growth ratio of 0.86 and a beta of 0.94. The company has a fifty day moving average of $234.56 and a 200-day moving average of $219.34. Five Below has a twelve month low of $143.02 and a twelve month high of $263.88.

Five Below (NASDAQ:FIVE - Get Free Report) last issued its earnings results on Wednesday, September 2nd. The specialty retailer reported $1.68 earnings per share for the quarter, topping analysts' consensus estimates of $1.40 by $0.28. Five Below had a return on equity of 22.13% and a net margin of 11.65%. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the company posted $0.81 earnings per share. The firm's revenue for the quarter was up 22.9% on a year-over-year basis. 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. Sell-side analysts anticipate that Five Below will post 10.51 EPS for the current fiscal year.

Insider Buying and Selling at Five Below

In other Five Below news, COO Kenneth Bull sold 10,510 shares of Five Below stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $248.06, for a total value of $2,607,110.60. Following the transaction, the chief operating officer directly owned 75,064 shares of the company's stock, valued at $18,620,375.84. The trade was a 12.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Eric Specter sold 5,500 shares of the firm's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $248.99, for a total transaction of $1,369,445.00. Following the completion of the sale, the chief accounting officer directly owned 35,482 shares in the company, valued at approximately $8,834,663.18. This trade represents a 13.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 18,438 shares of company stock valued at $4,580,933 over the last ninety days. Insiders own 0.96% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Pension & Wealth Management Advisors Inc. purchased a new position in shares of Five Below in the 3rd quarter worth about $25,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Five Below during the 2nd quarter valued at about $31,000. Bayban purchased a new position in Five Below in the fourth quarter worth about $34,000. Elevation Wealth Partners LLC raised its holdings in Five Below by 966.7% in the second quarter. Elevation Wealth Partners LLC now owns 192 shares of the specialty retailer's stock worth $35,000 after buying an additional 174 shares during the last quarter. Finally, Basecamp Wealth Advisors LLC raised its holdings in Five Below by 83.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 182 shares of the specialty retailer's stock worth $42,000 after buying an additional 83 shares during the last quarter.

About Five Below

Five Below, Inc is a specialty value retailer that sells a broad assortment of trend-right merchandise primarily for children, teenagers and young adults. Its products generally span categories such as style and accessories, room décor, sports equipment, technology accessories, arts and crafts, party supplies, seasonal items, toys and games, and candy.

The company operates physical stores and an e-commerce platform in the United States. Five Below's business model emphasizes frequently changing assortments, low prices and products aligned with current consumer trends, with merchandise organized around categories including “Room,” “Style,” “Sports,” “Tech,” “Create,” “Party” and “Candy.”

Five Below was founded in 2002 by David Schlessinger and Tom Vellios, and its first store opened in Wayne, Pennsylvania.

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