Morgan Stanley Forecasts Strong Price Appreciation for Five Below (NASDAQ:FIVE) Stock

Key Points

• Morgan Stanley has raised its price target for Five Below (NASDAQ:FIVE) from $135.00 to $160.00, suggesting a potential upside of 4.80% based on the stock's previous close.
• Eight analysts have rated Five Below with a Buy rating, while eleven assigned a Hold rating, contributing to a consensus price target of $136.58.
• In its latest quarterly earnings, Five Below reported a 23.7% increase in revenue year-over-year, with earnings per share reaching $0.81, exceeding analysts' expectations of $0.61.

Five Below (NASDAQ:FIVE - Get Free Report) had its price target raised by Morgan Stanley from $135.00 to $160.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the specialty retailer's stock. Morgan Stanley's target price would suggest a potential upside of 4.80% from the stock's previous close.

FIVE has been the subject of a number of other reports. Barclays set a $135.00 price target on shares of Five Below in a research report on Thursday. Evercore ISI lifted their price objective on shares of Five Below from $132.00 to $134.00 and gave the company an "in-line" rating in a report on Tuesday. Citigroup restated a "neutral" rating on shares of Five Below in a report on Thursday. Craig Hallum set a $180.00 price objective on shares of Five Below in a report on Thursday. Finally, UBS Group lifted their price objective on shares of Five Below from $160.00 to $184.00 and gave the company a "buy" rating in a report on Thursday. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $136.58.

Five Below Stock Performance

Shares of Five Below stock traded up $8.26 during trading on Thursday, hitting $152.67. 2,197,808 shares of the company's stock were exchanged, compared to its average volume of 1,929,524. The business has a 50-day simple moving average of $134.89 and a 200-day simple moving average of $104.48. Five Below has a 52-week low of $52.38 and a 52-week high of $154.30. The stock has a market capitalization of $8.41 billion, a price-to-earnings ratio of 32.01 and a beta of 1.06.

Five Below (NASDAQ:FIVE - Get Free Report) last issued its quarterly earnings results on Wednesday, August 27th. The specialty retailer reported $0.81 earnings per share for the quarter, beating analysts' consensus estimates of $0.61 by $0.20. Five Below had a net margin of 6.52% and a return on equity of 17.00%. The firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $988.91 million. During the same period last year, the company posted $0.54 EPS. Five Below's quarterly revenue was up 23.7% compared to the same quarter last year. Five Below has set its FY 2025 guidance at 4.760-5.160 EPS. Q3 2025 guidance at 0.120-0.240 EPS. On average, equities analysts anticipate that Five Below will post 4.93 earnings per share for the current fiscal year.

Insider Activity

In other Five Below news, CAO Eric M. Specter sold 5,500 shares of the business's stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $130.77, for a total transaction of $719,235.00. Following the transaction, the chief accounting officer owned 55,854 shares in the company, valued at approximately $7,304,027.58. The trade was a 8.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Amit Jhunjhunwala sold 1,700 shares of the business's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $125.17, for a total value of $212,789.00. Following the transaction, the insider owned 25,890 shares in the company, valued at $3,240,651.30. The trade was a 6.16% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 13,200 shares of company stock valued at $1,740,209 in the last ninety days. 1.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Five Below

A number of institutional investors and hedge funds have recently made changes to their positions in FIVE. Elevation Point Wealth Partners LLC acquired a new position in shares of Five Below during the 2nd quarter worth $26,000. IFP Advisors Inc grew its stake in shares of Five Below by 653.8% during the 2nd quarter. IFP Advisors Inc now owns 196 shares of the specialty retailer's stock worth $27,000 after purchasing an additional 170 shares during the period. Byrne Asset Management LLC acquired a new position in shares of Five Below during the 1st quarter worth $29,000. Caitong International Asset Management Co. Ltd grew its stake in shares of Five Below by 1,097.4% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 455 shares of the specialty retailer's stock worth $34,000 after purchasing an additional 417 shares during the period. Finally, Bessemer Group Inc. grew its stake in shares of Five Below by 246.9% during the 1st quarter. Bessemer Group Inc. now owns 496 shares of the specialty retailer's stock worth $37,000 after purchasing an additional 353 shares during the period.

Five Below Company Profile

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.

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