Loop Capital Upgrades Five Below (NASDAQ:FIVE) to Buy

Key Points

• Loop Capital upgraded Five Below's stock from a "hold" to a "buy" rating, raising the price target from $130.00 to $165.00, indicating a potential upside of 25.06%.
• Five Below reported a quarterly earnings increase, with earnings per share of $0.86, surpassing estimates and showing a 19.5% revenue growth year-over-year.
• Despite the positive outlook from multiple analysts including UBS and Wells Fargo, the stock has seen insider selling, with notable transactions totaling over $1.7 million in the past three months.

Five Below (NASDAQ:FIVE - Get Free Report) was upgraded by equities research analysts at Loop Capital from a "hold" rating to a "buy" rating in a note issued to investors on Tuesday, Marketbeat Ratings reports. The firm currently has a $165.00 price objective on the specialty retailer's stock, up from their previous price objective of $130.00. Loop Capital's target price would suggest a potential upside of 25.06% from the company's current price.

FIVE has been the topic of a number of other research reports. UBS Group boosted their price target on Five Below from $110.00 to $160.00 and gave the company a "buy" rating in a report on Thursday, June 5th. Wells Fargo & Company boosted their target price on Five Below from $115.00 to $140.00 and gave the company an "overweight" rating in a research note on Thursday, June 5th. JPMorgan Chase & Co. raised their price target on Five Below from $105.00 to $154.00 and gave the stock a "neutral" rating in a research note on Monday, July 21st. Bank of America lifted their price target on shares of Five Below from $78.00 to $93.00 and gave the company an "underperform" rating in a report on Thursday, June 5th. Finally, The Goldman Sachs Group upped their price objective on shares of Five Below from $122.00 to $135.00 and gave the stock a "buy" rating in a report on Wednesday, June 25th. One equities research analyst has rated the stock with a sell rating, thirteen have given a hold rating and seven have assigned a buy rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $120.84.

Five Below Trading Down 1.2%

NASDAQ FIVE opened at $131.94 on Tuesday. The firm has a market cap of $7.26 billion, a PE ratio of 27.66 and a beta of 1.06. Five Below has a 1-year low of $52.38 and a 1-year high of $143.88. The stock has a 50-day moving average of $131.21 and a 200-day moving average of $100.80.

Five Below (NASDAQ:FIVE - Get Free Report) last released its quarterly earnings data on Wednesday, June 4th. The specialty retailer reported $0.86 earnings per share for the quarter, beating analysts' consensus estimates of $0.83 by $0.03. The firm had revenue of $970.53 million during the quarter, compared to analyst estimates of $966.29 million. Five Below had a return on equity of 17.00% and a net margin of 6.52%. The business's quarterly revenue was up 19.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.60 earnings per share. As a group, equities research analysts forecast that Five Below will post 4.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider George Hill sold 4,500 shares of the stock in a transaction that occurred on Thursday, June 5th. The shares were sold at an average price of $132.93, for a total transaction of $598,185.00. Following the sale, the insider owned 44,130 shares in the company, valued at $5,866,200.90. This represents a 9.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Eric M. Specter sold 5,500 shares of the firm's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $130.77, for a total transaction of $719,235.00. Following the sale, the chief accounting officer directly owned 55,854 shares of the company's stock, valued at $7,304,027.58. This trade represents a 8.96% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 13,200 shares of company stock valued at $1,740,209. Insiders own 1.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of FIVE. IFP Advisors Inc raised its position in Five Below by 653.8% in the 2nd quarter. IFP Advisors Inc now owns 196 shares of the specialty retailer's stock worth $27,000 after buying an additional 170 shares during the last quarter. Byrne Asset Management LLC bought a new stake in shares of Five Below in the first quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of Five Below by 1,097.4% during the first quarter. Caitong International Asset Management Co. Ltd now owns 455 shares of the specialty retailer's stock valued at $34,000 after purchasing an additional 417 shares during the last quarter. Bessemer Group Inc. lifted its position in Five Below by 246.9% during the first quarter. Bessemer Group Inc. now owns 496 shares of the specialty retailer's stock valued at $37,000 after purchasing an additional 353 shares during the period. Finally, UMB Bank n.a. lifted its position in Five Below by 61.7% during the first quarter. UMB Bank n.a. now owns 540 shares of the specialty retailer's stock valued at $40,000 after purchasing an additional 206 shares during the period.

About Five Below

Five Below, Inc operates as a specialty value retailer in the United States. The company offers range of accessories, which includes novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and t-shirts, as well as nail polish, lip gloss, fragrance, and branded cosmetics; and personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.