Fortune Brands Home & Security (FBHS) Rating Increased to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Fortune Brands Home & Security (NYSE:FBHS) from a hold rating to a buy rating in a research report released on Monday morning. The firm currently has $73.00 price objective on the industrial products company’s stock.

According to Zacks, “In the last three months, Fortune Brands' shares have outperformed the industry. We believe that the company is poised to gain from its organic and inorganic initiatives in the long run. In fourth-quarter 2017, the company's earnings surpassed the Zacks Consensus Estimate by 1.3% while grew 13% year over year. For 2018, the company anticipates gaining from roughly 5-7% growth in the U.S. home products market and 5-6% rise in global market. Earnings will be within $3.54-$3.66, gaining from 6-7% sales growth and lower corporate tax rates. Cabinets sales are likely to grow in the mid-single digit range in the year. Sales in the Doors segment will increase in high-single digits to low-double digits and Security sales are predicted to increase in mid-single digits. Plumbing segment will benefit from new brand additions.”

Several other research analysts also recently issued reports on the stock. Royal Bank of Canada dropped their target price on shares of Fortune Brands Home & Security from $78.00 to $74.00 and set an outperform rating on the stock in a research note on Monday, November 13th. Jefferies Group reiterated a buy rating and issued a $78.00 target price on shares of Fortune Brands Home & Security in a research note on Thursday, October 12th. SunTrust Banks reiterated a hold rating and issued a $63.00 target price on shares of Fortune Brands Home & Security in a research note on Friday, November 10th. Robert W. Baird reiterated a buy rating and issued a $72.00 target price on shares of Fortune Brands Home & Security in a research note on Tuesday, October 24th. Finally, Citigroup upped their target price on shares of Fortune Brands Home & Security from $68.00 to $71.00 and gave the stock a neutral rating in a research note on Friday, October 27th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the company. The company presently has an average rating of Hold and an average price target of $72.92.

Fortune Brands Home & Security (NYSE FBHS) opened at $63.40 on Monday. The stock has a market cap of $9,720.00, a P/E ratio of 20.79, a PEG ratio of 1.43 and a beta of 1.33. Fortune Brands Home & Security has a 52 week low of $55.25 and a 52 week high of $73.62. The company has a quick ratio of 1.13, a current ratio of 1.77 and a debt-to-equity ratio of 0.58.

Fortune Brands Home & Security (NYSE:FBHS) last issued its earnings results on Thursday, February 1st. The industrial products company reported $0.80 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.80. The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.39 billion. Fortune Brands Home & Security had a net margin of 8.95% and a return on equity of 18.73%. The business’s revenue was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.71 earnings per share. research analysts forecast that Fortune Brands Home & Security will post 3.63 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 14th. Investors of record on Friday, February 23rd will be given a dividend of $0.20 per share. This is an increase from Fortune Brands Home & Security’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Thursday, February 22nd. This represents a $0.80 dividend on an annualized basis and a yield of 1.26%. Fortune Brands Home & Security’s dividend payout ratio is 23.61%.

Fortune Brands Home & Security declared that its Board of Directors has authorized a share buyback plan on Monday, December 11th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the industrial products company to buy shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its shares are undervalued.

In related news, Director Ronald V. Waters sold 5,000 shares of the stock in a transaction that occurred on Friday, January 5th. The shares were sold at an average price of $71.50, for a total transaction of $357,500.00. Following the transaction, the director now owns 21,674 shares in the company, valued at $1,549,691. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.61% of the stock is owned by corporate insiders.

Institutional investors have recently modified their holdings of the stock. Profund Advisors LLC increased its holdings in Fortune Brands Home & Security by 1.1% during the second quarter. Profund Advisors LLC now owns 3,880 shares of the industrial products company’s stock valued at $253,000 after buying an additional 42 shares during the last quarter. Sentry Investment Management LLC increased its holdings in Fortune Brands Home & Security by 1.2% during the second quarter. Sentry Investment Management LLC now owns 10,287 shares of the industrial products company’s stock valued at $671,000 after buying an additional 122 shares during the last quarter. Scotia Capital Inc. increased its holdings in Fortune Brands Home & Security by 5.3% during the second quarter. Scotia Capital Inc. now owns 4,746 shares of the industrial products company’s stock valued at $310,000 after buying an additional 237 shares during the last quarter. Nordea Investment Management AB increased its holdings in Fortune Brands Home & Security by 4.4% during the second quarter. Nordea Investment Management AB now owns 6,598 shares of the industrial products company’s stock valued at $430,000 after buying an additional 277 shares during the last quarter. Finally, Cornerstone Capital Management Holdings LLC. increased its holdings in Fortune Brands Home & Security by 1.4% during the second quarter. Cornerstone Capital Management Holdings LLC. now owns 26,818 shares of the industrial products company’s stock valued at $1,748,000 after buying an additional 381 shares during the last quarter. Institutional investors own 87.52% of the company’s stock.

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Fortune Brands Home & Security Company Profile

Fortune Brands Home & Security, Inc is a holding company. The Company operates through four segments. The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names, including Aristokraft, Mid-Continent, Diamond, Kitchen Classics, Kitchen Craft, Schrock, Omega, Homecrest, Thomasville, StarMark and Ultracraft.

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