Floor & Decor (NYSE:FND) Reaches New 1-Year Low - Time to Sell?

Key Points

• Floor & Decor shares hit a new 52-week low, falling to as low as $46.13 and ending the session down about 6%, signaling ongoing weakness in the stock.
• Recent analyst action has turned more cautious, with multiple firms cutting price targets and several downgrades; the consensus rating is now Hold with an average target of $59.17.
• The company’s latest earnings missed expectations, as Q1 EPS and revenue came in below estimates, while insider trading was mixed with the CEO buying shares and an EVP selling shares.

Floor & Decor Holdings, Inc. (NYSE:FND - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $46.13 and last traded at $46.8230, with a volume of 280192 shares changing hands. The stock had previously closed at $47.65.

Analysts Set New Price Targets

FND has been the subject of several research reports. Wells Fargo & Company reduced their price target 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. Weiss Ratings lowered Floor & Decor from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday. JPMorgan Chase & Co. reduced their price target on Floor & Decor from $78.00 to $48.00 and set a "neutral" rating for the company in a report on Friday, April 24th. Zelman & Associates lowered their target price on shares of Floor & Decor from $80.00 to $65.00 and set a "neutral" rating on the stock in a research report on Friday, April 17th. Finally, Zacks Research downgraded shares of Floor & Decor from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 6th. Five investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Floor & Decor currently has an average rating of "Hold" and an average price target of $59.17.

Floor & Decor Stock Down 6.0%

The company has a market cap of $4.83 billion, a P/E ratio of 24.35, a price-to-earnings-growth ratio of 4.20 and a beta of 1.63. The stock's 50-day moving average price is $53.13 and its 200 day moving average price is $61.47.

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

Insiders Place Their Bets

In other news, CEO Bradley Paulsen bought 5,000 shares of the business's stock in a transaction on Monday, May 4th. The stock was purchased at an average price of $50.25 per share, with a total value of $251,250.00. Following the transaction, the chief executive officer directly owned 85,010 shares in the company, valued at approximately $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 SEC, which is accessible through the SEC website. Also, EVP Ersan Sayman sold 15,200 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $48.28, for a total value of $733,856.00. Following the transaction, the executive vice president owned 71,676 shares of the company's stock, valued at approximately $3,460,517.28. This trade represents a 17.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 bought and sold shares of the stock. Saturna Capital Corp increased its position in Floor & Decor by 5.8% during the first quarter. Saturna Capital Corp now owns 9,635 shares of the company's stock worth $489,000 after acquiring an additional 527 shares during the period. PNC Financial Services Group Inc. increased its holdings in Floor & Decor by 14.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 10,815 shares of the company's stock valued at $549,000 after buying an additional 1,379 shares during the period. Dimensional Fund Advisors LP increased its holdings in Floor & Decor by 33.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,606,871 shares of the company's stock valued at $132,424,000 after buying an additional 659,355 shares during the period. Balefire LLC bought a new stake in Floor & Decor in the 1st quarter valued at $496,000. Finally, KBC Group NV increased its holdings in Floor & Decor by 21.9% in the 1st quarter. KBC Group NV now owns 3,626 shares of the company's stock valued at $184,000 after buying an additional 651 shares during the period.

Floor & Decor Company Profile

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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