Capital World Investors Raises Stock Holdings in Floor & Decor Holdings, Inc. $FND

Key Points

• Capital World Investors increased its Floor & Decor stake by 8.1% in the fourth quarter, ending with 7.47 million shares valued at about $455 million and representing roughly 6.93% of the company.
• Sentiment on FND has weakened among Wall Street analysts, with several firms cutting ratings and price targets; the stock now carries a consensus “Hold” rating and an average price target of $59.17.
• Despite a recent earnings miss, insider buying has been notable: CEO Bradley Paulsen and CFO Bryan Langley both purchased shares in May, while Floor & Decor reported Q1 EPS of $0.37 versus estimates of $0.42 and revenue of $1.15 billion versus $1.19 billion expected.

Capital World Investors boosted its holdings in shares of Floor & Decor Holdings, Inc. (NYSE:FND - Free Report) by 8.1% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 7,472,044 shares of the company's stock after purchasing an additional 557,728 shares during the quarter. Capital World Investors owned about 6.93% of Floor & Decor worth $454,975,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in FND. Advisory Services Network LLC bought a new stake in Floor & Decor during the 3rd quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. grew its holdings in Floor & Decor by 207.6% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 366 shares of the company's stock valued at $27,000 after buying an additional 247 shares in the last quarter. Clearstead Advisors LLC increased its stake in Floor & Decor by 215.7% in the 4th quarter. Clearstead Advisors LLC now owns 562 shares of the company's stock worth $34,000 after acquiring an additional 384 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in Floor & Decor in the 4th quarter worth approximately $34,000. Finally, eCIO Inc. bought a new stake in Floor & Decor in the 4th quarter worth approximately $41,000.

Analyst Ratings Changes

FND has been the topic of a number of research reports. Bank of America cut Floor & Decor from a "buy" rating to an "underperform" rating and set a $45.00 target price for the company. in a report on Friday, April 17th. Evercore set a $51.00 target price on Floor & Decor in a report on Friday, May 1st. Zelman & Associates dropped their target price on Floor & Decor from $80.00 to $65.00 and set a "neutral" rating for the company in a report on Friday, April 17th. Wells Fargo & Company dropped their target price on Floor & Decor from $70.00 to $50.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. Finally, TD Cowen dropped their target price on Floor & Decor from $60.00 to $48.00 and set a "hold" rating for the company in a report on Friday, May 1st. Five investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, Floor & Decor currently has an average rating of "Hold" and a consensus price target of $59.17.

Insider Buying and Selling at Floor & Decor

In other Floor & Decor news, CEO Bradley Paulsen acquired 5,000 shares of the business's stock in a transaction dated Monday, May 4th. The shares were purchased at an average price of $50.25 per share, for a total transaction of $251,250.00. Following the completion of the purchase, the chief executive officer directly owned 85,010 shares of the company's stock, valued at $4,271,752.50. The trade was a 6.25% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Bryan Langley bought 2,500 shares of Floor & Decor stock in a transaction that occurred on Monday, May 4th. The shares were acquired at an average cost of $48.69 per share, with a total value of $121,725.00. Following the acquisition, the chief financial officer owned 42,016 shares of the company's stock, valued at $2,045,759.04. The trade was a 6.33% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 1.80% of the stock is currently owned by company insiders.

Floor & Decor Price Performance

FND opened at $47.30 on Monday. The firm has a market capitalization of $5.10 billion, a PE ratio of 25.71, a price-to-earnings-growth ratio of 4.08 and a beta of 1.62. The business's 50-day moving average is $49.63 and its two-hundred day moving average is $59.48. Floor & Decor Holdings, Inc. has a 1 year low of $42.64 and a 1 year high of $92.40.

Floor & Decor (NYSE:FND - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.37 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.05). Floor & Decor had a return on equity of 8.38% and a net margin of 4.27%.The firm had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the prior year, the firm posted $0.46 earnings per share. The business's revenue for the quarter was down .7% compared to the same quarter last year. Floor & Decor has set its FY 2026 guidance at 1.830-2.080 EPS. As a group, sell-side analysts expect that Floor & Decor Holdings, Inc. will post 1.92 EPS for the current year.

About Floor & Decor

Founded in 2000 and headquartered in Atlanta, Floor & Decor Holdings Inc is a specialty retailer focused on hard surface flooring and related accessories in the United States. The company serves both professional installers and do-it-yourself customers through a growing network of warehouse-format stores and a comprehensive e-commerce platform.

Floor & Decor’s product offering spans ceramic and porcelain tile, engineered and solid hardwood, laminate, luxury vinyl plank and tile, natural stone and a full suite of installation materials such as grout, mortars and underlayment.

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