Interface (NASDAQ:TILE) Reaches New 1-Year High - Time to Buy?

Key Points

• Interface hit a new 52-week high of $40.84, though shares later traded at $39.80; the article also reports a 2.7% decline.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $40.50. Barrington Research raised its target to $45, while other firms cut ratings to Hold.
• In its latest reported quarter, Interface earned $0.88 per share, beating the $0.64 estimate, and revenue rose 5.4% year over year to $395.7 million.

Interface, Inc. (NASDAQ:TILE - Get Free Report) shares hit a new 52-week high during trading on Thursday. The company traded as high as $40.84 and last traded at $39.7960, with a volume of 12,340 shares traded. The stock had previously closed at $40.16.

Analysts Set New Price Targets

Several research analysts have recently issued reports on TILE shares. Barrington Research increased their price objective on shares of Interface from $36.00 to $45.00 and gave the company an "outperform" rating in a report on Monday, August 10th. Weiss Ratings downgraded shares of Interface from a "buy (b+)" rating to a "buy (b)" rating in a report on Tuesday, October 27th. Zacks Research downgraded shares of Interface from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 9th. Finally, Wall Street Zen downgraded shares of Interface from a "buy" rating to a "hold" rating in a research note on Saturday, October 31st. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $40.50.

Interface Trading Down 2.7%

The company has a quick ratio of 1.35, a current ratio of 2.53 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $2.27 billion, a PE ratio of 15.76, a P/E/G ratio of 1.07 and a beta of 2.08. The firm has a 50 day moving average price of $35.80 and a 200 day moving average price of $32.26.

Interface (NASDAQ:TILE - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The textile maker reported $0.88 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.24. Interface had a net margin of 10.10% and a return on equity of 21.77%. The firm had revenue of $395.70 million for the quarter, compared to analysts' expectations of $391.22 million. During the same quarter last year, the company posted $0.60 EPS. The business's quarterly revenue was up 5.4% on a year-over-year basis. Equities analysts expect that Interface, Inc. will post 2.36 EPS for the current fiscal year.

Interface Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were issued a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Friday, September 4th. Interface's dividend payout ratio (DPR) is 4.86%.

Insider Activity

In other Interface news, CEO Laurel Hurd sold 7,000 shares of the firm's stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $36.42, for a total transaction of $254,940.00. Following the sale, the chief executive officer directly owned 492,978 shares of the company's stock, valued at $17,954,258.76. This trade represents a 1.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP David B. Foshee sold 28,451 shares of the company's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $35.99, for a total value of $1,023,951.49. Following the sale, the vice president directly owned 146,563 shares in the company, valued at approximately $5,274,802.37. This represents a 16.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 65,621 shares of company stock valued at $2,378,904 in the last 90 days. Company insiders own 2.47% of the company's stock.

Institutional Investors Weigh In On Interface

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in Interface during the 2nd quarter valued at about $338,055,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in shares of Interface in the 2nd quarter valued at approximately $66,077,000. Reynders McVeigh Capital Management LLC raised its position in Interface by 11.4% during the second quarter. Reynders McVeigh Capital Management LLC now owns 489,736 shares of the textile maker's stock worth $17,552,000 after acquiring an additional 50,054 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Interface during the 2nd quarter worth $16,508,000. Finally, Renaissance Technologies LLC increased its position in Interface by 107.6% during the 1st quarter. Renaissance Technologies LLC now owns 460,156 shares of the textile maker's stock worth $11,467,000 after purchasing an additional 238,515 shares in the last quarter. 98.34% of the stock is owned by institutional investors.

Interface Company Profile

Interface, Inc designs and manufactures modular flooring products for commercial, institutional and residential interiors. Its portfolio includes carpet tile, broadloom carpet and resilient flooring, including luxury vinyl tile. The company serves markets such as corporate offices, hospitality, education, healthcare and retail.

Founded in 1973 by Ray Anderson, Interface is headquartered in Atlanta, Georgia, and sells its products through a global network serving customers in North America, Europe and the Asia-Pacific region.

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