The Zacks Investment Research Downgrades Fortune Brands Home & Security, Inc. (FBHS) to Sell

Zacks Investment Research cut shares of Fortune Brands Home & Security, Inc. (NYSE:FBHS) from a hold rating to a sell rating in a report published on Monday morning.

According to Zacks, “Fortune Brands Home & Security, Inc provides home and security products in the United States. It manufactures custom, semi-custom, and stock cabinetry for the kitchen, bath, and other parts. The Company is also engaged in manufacturing and selling fiberglass and steel entry door systems, vinyl-framed windows and patio doors and urethane millwork product lines under the Therma-Tru, Simonton, and Fypon brand names in the United States and Canada. Fortune Brand also provides locks, safety, and security devices and tool storage and garage organization products. “

FBHS has been the topic of a number of other reports. Evercore ISI assumed coverage on shares of Fortune Brands Home & Security in a research note on Monday, November 14th. They issued a buy rating and a $64.00 price target on the stock. Barclays PLC assumed coverage on shares of Fortune Brands Home & Security in a research note on Thursday, January 5th. They issued an equal weight rating and a $59.00 price target on the stock. KeyCorp downgraded shares of Fortune Brands Home & Security to a hold rating in a research note on Tuesday, November 22nd. Wells Fargo & Company began coverage on shares of Fortune Brands Home & Security in a research report on Wednesday, September 28th. They set an outperform rating on the stock. Finally, J P Morgan Chase & Co upgraded shares of Fortune Brands Home & Security from a neutral rating to an overweight rating and set a $68.00 target price on the stock in a research report on Monday, October 31st. One research analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have issued a buy rating to the stock. Fortune Brands Home & Security has a consensus rating of Buy and an average target price of $63.27.

Fortune Brands Home & Security (NYSE:FBHS) traded up 0.22% on Monday, hitting $54.36. 106,436 shares of the stock traded hands. Fortune Brands Home & Security has a 1-year low of $44.19 and a 1-year high of $64.47. The company has a market cap of $8.39 billion, a price-to-earnings ratio of 21.75 and a beta of 1.29. The stock has a 50-day moving average price of $54.97 and a 200 day moving average price of $57.95.

Fortune Brands Home & Security (NYSE:FBHS) last posted its quarterly earnings results on Wednesday, October 26th. The company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.78 by $0.02. Fortune Brands Home & Security had a net margin of 7.99% and a return on equity of 17.69%. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $848 million. During the same period last year, the company posted $0.64 EPS. The firm’s quarterly revenue was up 3.3% compared to the same quarter last year. On average, analysts anticipate that Fortune Brands Home & Security will post $2.74 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 15th. Shareholders of record on Friday, February 24th will be issued a dividend of $0.18 per share. This is a positive change from Fortune Brands Home & Security’s previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Wednesday, February 22nd. This represents a $0.72 annualized dividend and a yield of 1.33%. Fortune Brands Home & Security’s dividend payout ratio (DPR) is presently 26.02%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FBHS. Douglas Lane & Associates LLC bought a new stake in Fortune Brands Home & Security during the second quarter valued at $2,641,000. First National Bank of Hutchinson raised its stake in Fortune Brands Home & Security by 25.2% in the second quarter. First National Bank of Hutchinson now owns 11,025 shares of the company’s stock valued at $619,000 after buying an additional 2,218 shares in the last quarter. National Investment Services Inc. WI bought a new stake in Fortune Brands Home & Security during the second quarter valued at $253,000. Bank of Montreal Can bought a new stake in Fortune Brands Home & Security during the second quarter valued at $4,367,000. Finally, Shell Asset Management Co. raised its stake in Fortune Brands Home & Security by 29.6% in the second quarter. Shell Asset Management Co. now owns 11,335 shares of the company’s stock valued at $657,000 after buying an additional 2,588 shares in the last quarter. Hedge funds and other institutional investors own 89.12% of the company’s stock.

Fortune Brands Home & Security Company Profile

Fortune Brands Home & Security, Inc is a holding company. The Company is a home and security products company with a portfolio of branded products used for residential home repair, remodeling, new construction and security applications. The Company operates through four segments: Cabinets, Plumbing, Doors and Security.

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