Fortune Brands Home & Security (FBHS) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Fortune Brands Home & Security (NYSE:FBHS) from a buy rating to a hold rating in a research report sent to investors on Monday morning.

According to Zacks, “Over the past three months, Fortune Brands' shares have underperformed the industry. The company reported weaker-than-expected third-quarter 2018 results. Weaker summer market demand and adverse impact of Hurricane Florence dampened revenues in the quarter. This along with rising costs and expenses impacted profitability. The company perceives that inflationary pressure, integration costs associated with the Fiberon acquisition, impact of bond financing and inefficiencies existing within Security operations will weigh over its near-term profitability. Notably, the company lowered its earnings view for 2018 from $3.62-$3.72 per share to $3.41-$3.49 per share. However, we believe that the company is poised to gain from its solid product portfolio, inorganic activities and shareholder-friendly policy in the long run. In the past 60 days, earnings estimates on the stock improved for 2019.”

FBHS has been the topic of a number of other research reports. Nomura decreased their price target on shares of Fortune Brands Home & Security from $56.00 to $52.00 and set a neutral rating on the stock in a research note on Friday, October 26th. ValuEngine raised shares of Fortune Brands Home & Security from a strong sell rating to a sell rating in a research note on Friday, December 7th. Credit Suisse Group set a $57.00 target price on shares of Fortune Brands Home & Security and gave the company a buy rating in a research note on Wednesday, October 17th. TheStreet downgraded shares of Fortune Brands Home & Security from a b- rating to a c+ rating in a research note on Friday, October 26th. Finally, Evercore ISI raised shares of Fortune Brands Home & Security from an in-line rating to an outperform rating in a research note on Monday. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have given a buy rating to the company. Fortune Brands Home & Security has a consensus rating of Hold and an average price target of $56.25.

FBHS stock opened at $42.58 on Monday. Fortune Brands Home & Security has a one year low of $35.27 and a one year high of $73.62. The company has a current ratio of 1.30, a quick ratio of 0.83 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $5.96 billion, a PE ratio of 13.82, a P/E/G ratio of 1.05 and a beta of 1.31.

Fortune Brands Home & Security (NYSE:FBHS) last released its earnings results on Thursday, October 25th. The industrial products company reported $0.93 EPS for the quarter, missing the consensus estimate of $1.05 by ($0.12). Fortune Brands Home & Security had a return on equity of 20.95% and a net margin of 7.94%. The company had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.44 billion. On average, equities research analysts predict that Fortune Brands Home & Security will post 3.43 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 13th. Stockholders of record on Friday, February 22nd will be issued a $0.22 dividend. The ex-dividend date is Thursday, February 21st. This is a boost from Fortune Brands Home & Security’s previous quarterly dividend of $0.20. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.07%. Fortune Brands Home & Security’s dividend payout ratio is presently 25.97%.

Several hedge funds and other institutional investors have recently bought and sold shares of FBHS. BlackRock Inc. grew its holdings in shares of Fortune Brands Home & Security by 20.3% in the third quarter. BlackRock Inc. now owns 16,204,204 shares of the industrial products company’s stock worth $848,454,000 after purchasing an additional 2,733,216 shares during the last quarter. Glenmede Trust Co. NA grew its holdings in Fortune Brands Home & Security by 4,953.2% during the 2nd quarter. Glenmede Trust Co. NA now owns 1,018,622 shares of the industrial products company’s stock worth $54,690,000 after acquiring an additional 998,464 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in Fortune Brands Home & Security by 239.3% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 1,103,010 shares of the industrial products company’s stock worth $57,754,000 after acquiring an additional 777,948 shares in the last quarter. Federated Investors Inc. PA grew its holdings in Fortune Brands Home & Security by 23,019.0% during the 3rd quarter. Federated Investors Inc. PA now owns 645,713 shares of the industrial products company’s stock worth $33,810,000 after acquiring an additional 642,920 shares in the last quarter. Finally, Schroder Investment Management Group grew its holdings in Fortune Brands Home & Security by 35.7% during the 2nd quarter. Schroder Investment Management Group now owns 2,301,593 shares of the industrial products company’s stock worth $122,882,000 after acquiring an additional 605,743 shares in the last quarter. Hedge funds and other institutional investors own 86.83% of the company’s stock.

About Fortune Brands Home & Security

Fortune Brands Home & Security, Inc, together with its subsidiaries, provides home and security products for residential home repair, remodeling, new construction, and security applications. It operates in four segments: Cabinets, Plumbing, Doors, and Security. The Cabinets segment manufactures custom, semi-custom, and stock cabinetry, as well as vanities for the kitchen, bath, and other parts of the home directly to kitchen and bath dealers, home centers, wholesalers, and builders in North America.

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