Floor & Decor (NYSE:FND) Shares Down 4.9% - Here's Why

Key Points

• Floor & Decor shares fell 4.9% in mid-day trading, with the stock touching a low of $56.91 after closing at $59.04 the previous session.
• Analyst sentiment has weakened, as several firms cut ratings or lowered price targets; the stock now carries a consensus rating of “Hold” with an average target price of $59.17.
• Recent earnings disappointed, with quarterly EPS of $0.37 versus the $0.42 estimate and revenue of $1.15 billion below expectations, while insider trading was mixed with one executive selling shares and the CFO buying shares.

Shares of Floor & Decor Holdings, Inc. (NYSE:FND - Get Free Report) dropped 4.9% during mid-day trading on Monday . The company traded as low as $56.91 and last traded at $56.1490. Approximately 128,127 shares were traded during mid-day trading, a decline of 95% from the average daily volume of 2,813,376 shares. The stock had previously closed at $59.04.

Analyst Ratings Changes

A number of research firms recently commented on FND. Zacks Research cut Floor & Decor from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 6th. Bank of America lowered shares of Floor & Decor from a "buy" rating to an "underperform" rating and set a $45.00 price target for the company. in a research report on Friday, April 17th. Wells Fargo & Company lowered their price objective on shares of Floor & Decor from $70.00 to $50.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Barclays dropped their price objective on shares of Floor & Decor from $77.00 to $63.00 and set an "equal weight" rating on the stock in a report on Friday, April 24th. Finally, Stifel Nicolaus set a $75.00 target price on shares of Floor & Decor in a research report on Friday, May 1st. Five analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $59.17.

Floor & Decor Stock Down 3.4%

The stock's 50 day moving average price is $50.92 and its 200-day moving average price is $58.35. The stock has a market capitalization of $6.15 billion, a PE ratio of 31.00, a PEG ratio of 5.08 and a beta of 1.58.

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

Insider Activity

In related news, EVP Ersan Sayman sold 15,200 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $48.28, for a total transaction of $733,856.00. Following the completion of the sale, the executive vice president owned 71,676 shares in the company, valued at approximately $3,460,517.28. This trade represents a 17.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Bryan Langley bought 2,500 shares of the business's stock in a transaction that occurred on Monday, May 4th. The shares were acquired at an average price of $48.69 per share, with a total value of $121,725.00. Following the transaction, the chief financial officer directly owned 42,016 shares of the company's stock, valued at $2,045,759.04. This represents a 6.33% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. raised its position in shares of Floor & Decor by 1,060,525.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,881,888 shares of the company's stock valued at $236,368,000 after buying an additional 3,881,522 shares during the last quarter. Capital World Investors boosted its position in shares of Floor & Decor by 37.2% during the third quarter. Capital World Investors now owns 6,914,316 shares of the company's stock worth $509,589,000 after acquiring an additional 1,872,892 shares during the last quarter. Champlain Investment Partners LLC purchased a new position in Floor & Decor during the fourth quarter valued at $108,060,000. Durable Capital Partners LP bought a new stake in Floor & Decor in the 2nd quarter valued at $106,221,000. Finally, FIL Ltd increased its holdings in Floor & Decor by 193.9% in the 4th quarter. FIL Ltd now owns 1,836,696 shares of the company's stock valued at $111,836,000 after acquiring an additional 1,211,731 shares during the last quarter.

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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