Wall Street Zen Upgrades Five Below (NASDAQ:FIVE) to Buy

Key Points

• Wall Street Zen upgraded Five Below to “buy” from “hold.” The stock has a “Moderate Buy” consensus rating, with 19 Buy, one Strong Buy and 12 Hold recommendations and an average price target of $300.20.
• Five Below reported quarterly EPS of $1.68, beating estimates of $1.40, while revenue rose 22.9% year over year to $1.26 billion, ahead of expectations.
• Shares opened at $214.73, versus a 52-week range of $137.77 to $263.88. Corporate insiders sold 18,438 shares worth about $4.58 million over the past three months, while several institutional investors increased or initiated positions.

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

A number of other equities analysts have also recently commented on the stock. JPMorgan Chase & Co. lifted their target price on shares of Five Below from $325.00 to $368.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. Guggenheim lifted their price objective on Five Below from $250.00 to $290.00 and gave the stock a "buy" rating in a report on Thursday, September 3rd. Mizuho set a $295.00 price target on Five Below in a research report on Thursday, September 3rd. Jefferies Financial Group boosted their price objective on Five Below from $350.00 to $420.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Finally, Wolfe Research cut shares of Five Below from an "outperform" rating to a "peer perform" rating in a report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and twelve have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $300.20.

Five Below Stock Performance

Shares of FIVE stock opened at $214.73 on Friday. The firm's 50-day simple moving average is $235.49 and its two-hundred day simple moving average is $219.70. The firm has a market cap of $11.82 billion, a price-to-earnings ratio of 19.28, a P/E/G ratio of 0.83 and a beta of 0.94. Five Below has a 52 week low of $137.77 and a 52 week high of $263.88.

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

Insiders Place Their Bets

In related news, CMO Jacob Hawkins sold 818 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $248.88, for a total value of $203,583.84. Following the completion of the sale, the chief marketing officer owned 3,728 shares of the company's stock, valued at $927,824.64. This trade represents a 17.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Eric M. Specter sold 5,500 shares of Five Below stock in a transaction on Monday, September 14th. The shares were 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 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 sold a total of 18,438 shares of company stock valued at $4,580,933 over the last three months. 0.96% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Five Below

A number of large investors have recently modified their holdings of the stock. Riversedge Advisors LLC purchased a new position in shares of Five Below during the third quarter valued at about $308,000. Monument Capital Management bought a new stake in Five Below during the 3rd quarter valued at approximately $2,581,000. GAMMA Investing LLC grew its holdings in shares of Five Below by 26.5% during the 3rd quarter. GAMMA Investing LLC now owns 7,146 shares of the specialty retailer's stock worth $1,569,000 after acquiring an additional 1,498 shares during the period. Overbrook Management Corp purchased a new position in shares of Five Below during the 3rd quarter worth approximately $220,000. Finally, Farther Finance Advisors LLC raised its position in shares of Five Below by 91.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,103 shares of the specialty retailer's stock worth $462,000 after acquiring an additional 1,006 shares in the last quarter.

Five Below Company Profile

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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