Morgan Stanley Issues Pessimistic Forecast for Floor & Decor (NYSE:FND) Stock Price

Key Points

• Morgan Stanley cut Floor & Decor’s price target from $64 to $60 while maintaining an “equal weight” rating, implying roughly 21.9% upside from the reported $49.21 share price.
• Analyst sentiment remains cautious: MarketBeat shows a consensus “Reduce” rating and a $54.70 target, with recent target cuts from TD Cowen, JPMorgan, Telsey Advisory Group and Stifel Nicolaus.
• Floor & Decor exceeded quarterly EPS expectations with $0.61 versus $0.57 projected, but revenue of $1.21 billion fell slightly short of estimates despite 3% year-over-year growth.

Floor & Decor (NYSE:FND - Get Free Report) had its price target cut by Morgan Stanley from $64.00 to $60.00 in a research report issued on Monday, Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 21.92% from the stock's current price.

A number of other brokerages have also issued reports on FND. Bank of America reaffirmed an "underperform" rating on shares of Floor & Decor in a report on Friday. TD Cowen lowered their target price on shares of Floor & Decor from $58.00 to $52.00 and set a "hold" rating on the stock in a report on Friday. JPMorgan Chase & Co. dropped their target price on shares of Floor & Decor from $59.00 to $57.00 and set a "neutral" rating for the company in a research report on Friday. Telsey Advisory Group downgraded shares of Floor & Decor from an "outperform" rating to a "market perform" rating and reduced their price target for the company from $68.00 to $50.00 in a report on Friday. Finally, Stifel Nicolaus decreased their price target on shares of Floor & Decor from $52.00 to $51.00 and set a "hold" rating on the stock in a research note on Monday. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $54.70.

Floor & Decor Price Performance

Floor & Decor stock traded up $1.62 during mid-day trading on Monday, hitting $49.21. The stock had a trading volume of 1,139,078 shares, compared to its average volume of 2,739,398. Floor & Decor has a one year low of $42.64 and a one year high of $77.46. The company has a current ratio of 1.32, a quick ratio of 0.44 and a debt-to-equity ratio of 0.08. The firm has a market capitalization of $5.24 billion, a P/E ratio of 22.07, a P/E/G ratio of 3.97 and a beta of 1.60. The firm's 50 day moving average is $47.80 and its 200 day moving average is $54.90.

Floor & Decor (NYSE:FND - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.57 by $0.04. Floor & Decor had a return on equity of 8.40% and a net margin of 5.05%. The business had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the business earned $0.53 earnings per share. The business's revenue was up 3.0% on a year-over-year basis. On average, sell-side analysts forecast that Floor & Decor will post 1.93 earnings per share for the current fiscal year.

Insider Buying and Selling at Floor & Decor

In related news, insider Thomas V. Taylor sold 218,189 shares of the business's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $62.30, for a total value of $13,593,174.70. Following the sale, the insider owned 229,820 shares in the company, valued at approximately $14,317,786. The trade was a 48.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Floor & Decor

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Versant Capital Management Inc raised its position in shares of Floor & Decor by 3,263.2% during the 3rd quarter. Versant Capital Management Inc now owns 639 shares of the company's stock valued at $29,000 after buying an additional 620 shares in the last quarter. Summit Securities Group LLC bought a new stake in Floor & Decor during the first quarter worth approximately $31,000. TD Waterhouse Canada Inc. bought a new stake in Floor & Decor during the third quarter worth approximately $43,000. Leonteq Securities AG increased its stake in Floor & Decor by 320.7% during the first quarter. Leonteq Securities AG now owns 1,077 shares of the company's stock worth $55,000 after acquiring an additional 821 shares during the last quarter. Finally, GK Wealth Management LLC purchased a new stake in Floor & Decor during the third quarter valued at approximately $57,000.

About Floor & Decor

Floor & Decor Holdings, Inc is a specialty retailer focused on hard-surface flooring and related products. The company offers a broad selection of tile, natural stone, wood, laminate and vinyl flooring, along with installation materials, tools, accessories and home-decor items.

Floor & Decor serves homeowners, professional installers, designers, remodelers and commercial customers through warehouse-format stores, smaller design studios and its e-commerce platform. Its stores are designed to provide a wide product assortment for renovation and construction projects, while also offering services such as design support and product fulfillment.

Founded in 2000 and headquartered in Atlanta, Georgia, Floor & Decor operates primarily in the United States.

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