In a surprising and perplexing move, Cullen Frost Bankers Inc. has reduced its position in shares of Floor & Decor Holdings, Inc. by 2.8% during the first quarter of this year. This recent development was revealed in the company’s most recent 13F filing with the Securities and Exchange Commission (SEC). As a result of this maneuver, the institutional investor now owns 45,480 shares of Floor & Decor’s stock, after selling 1,323 shares during this period. The value of Cullen Frost Bankers Inc.’s holdings in the company amounts to an impressive $4,467,000 as per their most recent filing with the SEC.
Floor & Decor (NYSE:FND) made headlines on Thursday, May 4th when it announced its earnings results for the quarter. The company reported earnings per share (EPS) valuing at $0.66 – falling just short of analysts’ consensus estimates of $0.67 by ($0.01). Nevertheless, it is important to note that Floor & Decor maintains a net margin of 6.86% and a healthy return on equity amounting to an impressive 18.37%. Moreover, despite missing EPS estimates slightly, Floor & Decor generated revenue worth $1.12 billion during the quarter – surpassing consensus estimates that predicted revenue totaling $1.11 billion for that period alone.
Comparatively speaking with last year’s performance for the same time frame, there has been a remarkable increase in revenue for this retail chain specializing in floor and tile products. In fact, Floor & Décor witnessed an impressive growth rate of 9.1% during this quarter – truly cementing its position as a player to watch within the industry. Taking all factors into account, sell-side analysts are eagerly predicting that Floor & Decor Holdings will post an EPS value of 2.66 throughout the current fiscal year.
Turning our attention to some recent insider trading activity within the company, it seems that top-level executives have been partaking in a flurry of stock transactions. Most notably, EVP David Victor Christopherson engaged in the sale of 5,804 shares of Floor & Decor’s stock on Wednesday, July 12th. These shares were sold at an average price of $110.00 per share – bringing the total transaction value to an astonishing $638,440. After this sale, the executive vice president now directly holds 36,552 shares in Floor & Decor Holdings which are currently valued at approximately $4,020,720.
Meanwhile, CEO Thomas V. Taylor also took part in a stock transaction involving Floor & Decor on Wednesday, July 19th. The chief executive officer sold a staggering 18,656 shares of the company’s stock at an average price of $115.00 per share – resulting in a total value of $2,145,440. Following this high-value transaction, Thomas V. Taylor now holds roughly 177,891 shares in the company amounting to approximately $20,457,465.
It is worth mentioning that EVP David Victor Christopherson has additionally conducted another sale with Floor & Décor’s stock since his initial transaction in July. On July 12th once again he sold another 5,804 shares for a similar average price of $110.00 per share – totaling up to $638,440 worth of transactions from these sales alone. Currently holding around 36,552 shares after these recent sales have concluded brings Christopherson’s ownership value to an impressive sum of roughly $4,020823.
All these crucial insider trading activities have been disclosed via filings with the SEC that can be accessed through provided links for further examination and scrutiny by investors seeking more information about Floor & Decor Holdings.
As further evidence of insiders actively selling off their holdings within Floor & Decor Holdings Inc., over the course of last quarter, insiders have collectively sold an astonishing 48,920 shares of the company’s stock. These transactions have amounted to a total value of $5,323,160 and currently represent 2.50% ownership of Floor & Decor stock held by insiders.
With this flurry of insider trading activity taking place, it remains to be seen whether or not this could impact the market perception and performance of Floor & Decor Holdings, Inc. It will be interesting to observe how these developments will unfold in the months and years ahead and what implications they may have for investors interested in this prosperous company.
Floor & Decor Holdings, Inc.
FND
StrongBuy
Updated on: 06/08/2023
Renewed Interest and Confidence in Floor & Decor Holdings, Inc. Sparked by Institutional Investors and Hedge Funds
Floor & Decor Holdings, Inc. (FND), a leading specialty retailer in the home improvement industry, has recently seen changes in its positions by institutional investors and hedge funds. This indicates that there is renewed interest and confidence in the company’s growth potential.
One of the notable investors who purchased a stake in Floor & Decor is Ahrens Investment Partners LLC, which acquired shares worth approximately $29,000 during the first quarter. Similarly, Venturi Wealth Management LLC also entered the market with a stake worth about $39,000 during the same period. These investments highlight the belief these firms have in the company’s future prospects.
Whittier Trust Co. of Nevada Inc., another institutional investor, increased its stake in Floor & Decor by an impressive 54.2% during the first quarter. The firm now holds 464 shares of FND valued at $46,000 after acquiring an additional 163 shares in the last quarter. Belpointe Asset Management LLC also expressed its confidence by acquiring a new stake worth around $35,000 during the previous year.
These investments are significant indicators of Floor & Decor’s positive trajectory and potential for growth within the home improvement sector. Moreover, Canada Pension Plan Investment Board further solidified this sentiment with its purchase of a new stake valued at approximately $57,000 during the first quarter.
On August 5th, shares of FND opened at $111.00. The stock has shown stability and strong performance with a 50-day simple moving average of $102.77 and a 200-day simple moving average of $96.39. This demonstrates that investors have seen consistent returns from their investment over time.
Floor & Decor currently boasts an impressive market capitalization of $11.80 billion and displays decent valuation metrics such as a price-to-earnings ratio (PE ratio) of 40.07 and a price/earnings to growth ratio (P/E/G ratio) of 2.37 . These figures indicate that the stock is reasonably priced given its growth potential.
In terms of financial health, Floor & Decor carries a debt-to-equity ratio of 0.17, suggesting a low level of debt relative to equity. The company also maintains solid liquidity with a quick ratio of 0.15 and a current ratio of 1.32, demonstrating its ability to meet short-term obligations.
Research analyst reports have also shed light on the future prospects of FND. Wedbush recently increased their price objective for the stock from $100.00 to $115.00 and gave it an “outperform” rating in their research report published on July 25th.
Similarly, Morgan Stanley raised their target price on FND from $90.00 to $100.00 and assigned an “equal weight” rating to the stock in their research note released earlier this week. Jefferies Financial Group downgraded Floor & Decor from a “buy” rating to a “hold” rating while reducing their price objective from $110.00 to $108.00 in another research report published on July 21st.
Other analysts have also weighed in on the company’s performance, resulting in a consensus rating of “Hold” based on data from Bloomberg, with an average target price set at $101.13.
In conclusion, there has been notable activity by institutional investors and hedge funds in acquiring positions in Floor & Decor Holdings, Inc., reflecting growing confidence in the company’s potential for growth and success within the home improvement industry
