Interface (NASDAQ:TILE) Reaches New 52-Week High Following Strong Earnings

Key Points

• Interface shares reached a new 52-week high, trading around $37.10 after the company reported quarterly EPS of $0.88, exceeding analysts’ $0.64 estimate. Revenue rose 5.4% year over year to $395.7 million, also topping expectations.
• The company maintains a quarterly dividend of $0.03 per share, equivalent to a 0.3% yield and a 5.61% payout ratio. Analysts’ consensus view is “Moderate Buy,” with a $36 price target.
• Institutional investors own 98.34% of Interface, while two executives recently sold sizable portions of their holdings. The company’s financial position includes a 0.30 debt-to-equity ratio and a 20.09% return on equity.

Interface, Inc. (NASDAQ:TILE - Get Free Report)'s stock price reached a new 52-week high on Friday following a better than expected earnings announcement. The stock traded as high as $36.99 and last traded at $37.10, with a volume of 26238 shares traded. The stock had previously closed at $35.10.

The textile maker reported $0.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.64 by $0.24. The firm had revenue of $395.70 million for the quarter, compared to analyst estimates of $391.22 million. Interface had a return on equity of 20.09% and a net margin of 8.92%.Interface's revenue was up 5.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.60 EPS.

Interface Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Friday, June 5th were issued a dividend of $0.03 per share. The ex-dividend date was Friday, June 5th. This represents a $0.12 annualized dividend and a dividend yield of 0.3%. Interface's payout ratio is presently 5.61%.

Analyst Upgrades and Downgrades

TILE has been the subject of several recent analyst reports. Wall Street Zen raised shares of Interface from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 16th. Zacks Research cut shares of Interface from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 28th. Benchmark began coverage on Interface in a report on Tuesday, May 19th. They set a "buy" rating and a $36.00 price target on the stock. Weiss Ratings reiterated a "buy (b-)" rating on shares of Interface in a research note on Wednesday, June 17th. Finally, Barrington Research reiterated an "outperform" rating and issued a $36.00 price target on shares of Interface in a research report on Friday, April 17th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $36.00.

Insider Activity

In related news, VP David B. Foshee sold 44,393 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $29.00, for a total transaction of $1,287,397.00. Following the sale, the vice president directly owned 175,014 shares in the company, valued at $5,075,406. This represents a 20.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Bruce Andrew Hausmann sold 50,000 shares of Interface stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $29.66, for a total value of $1,483,000.00. Following the completion of the transaction, the chief financial officer directly owned 119,256 shares of the company's stock, valued at $3,537,132.96. This represents a 29.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 2.47% of the company's stock.

Hedge Funds Weigh In On Interface

Large investors have recently bought and sold shares of the business. Global Retirement Partners LLC bought a new position in Interface during the second quarter worth about $106,000. Bank of New York Mellon Corp bought a new position in shares of Interface in the 2nd quarter valued at about $16,508,000. Summit Global Investments acquired a new position in shares of Interface during the 2nd quarter worth approximately $1,367,000. Wedge Capital Management L L P NC increased its holdings in Interface by 4.7% during the second quarter. Wedge Capital Management L L P NC now owns 54,401 shares of the textile maker's stock worth $1,950,000 after buying an additional 2,465 shares during the last quarter. Finally, CX Institutional increased its holdings in Interface by 5.7% during the second quarter. CX Institutional now owns 60,999 shares of the textile maker's stock worth $2,186,000 after buying an additional 3,267 shares during the last quarter. 98.34% of the stock is currently owned by institutional investors and hedge funds.

Interface Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 2.43 and a quick ratio of 1.16. The company's 50-day simple moving average is $32.91 and its 200-day simple moving average is $30.41. The stock has a market capitalization of $2.25 billion, a P/E ratio of 17.76, a price-to-earnings-growth ratio of 1.11 and a beta of 1.90.

About Interface

Interface, Inc NASDAQ: TILE is a global manufacturer of modular flooring and resilient commercial flooring solutions. The company specializes in carpet tiles, luxury vinyl tile (LVT) and other environmentally responsible hard-surface products designed for use in corporate, education, healthcare, hospitality and retail environments. Interface's portfolio also includes broadloom carpet, rubber flooring and acoustic underlays, all engineered to meet performance, design and sustainability requirements in modern interior spaces.

Founded in 1973 by Ray C.

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