Traders Buy Large Volume of Call Options on Fortune Brands Home & Security (FBHS)

Fortune Brands Home & Security Inc (NYSE:FBHS) was the target of unusually large options trading activity on Wednesday. Investors acquired 1,941 call options on the stock. This represents an increase of approximately 1,307% compared to the typical volume of 138 call options.

In other news, Director Ronald V. Waters sold 5,000 shares of the stock in a transaction dated Friday, January 5th. The shares were sold at an average price of $71.50, for a total transaction of $357,500.00. Following the completion of the sale, 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 Securities & Exchange Commission, which is available through this link. 1.61% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of FBHS. Profund Advisors LLC boosted its stake in Fortune Brands Home & Security by 1.1% during the 2nd quarter. Profund Advisors LLC now owns 3,880 shares of the industrial products company’s stock valued at $253,000 after purchasing an additional 42 shares during the period. Quantitative Investment Management LLC acquired a new stake in shares of Fortune Brands Home & Security in the 2nd quarter worth approximately $3,209,000. UBS Asset Management Americas Inc. lifted its stake in shares of Fortune Brands Home & Security by 8.8% in the 2nd quarter. UBS Asset Management Americas Inc. now owns 411,920 shares of the industrial products company’s stock worth $26,874,000 after acquiring an additional 33,370 shares during the period. Vanguard Group Inc. lifted its stake in shares of Fortune Brands Home & Security by 3.1% in the 2nd quarter. Vanguard Group Inc. now owns 15,160,589 shares of the industrial products company’s stock worth $989,078,000 after acquiring an additional 460,317 shares during the period. Finally, California Public Employees Retirement System lifted its stake in shares of Fortune Brands Home & Security by 4.1% in the 2nd quarter. California Public Employees Retirement System now owns 326,700 shares of the industrial products company’s stock worth $21,314,000 after acquiring an additional 12,800 shares during the period. 87.04% of the stock is owned by hedge funds and other institutional investors.

A number of research analysts have issued reports on FBHS shares. Zacks Investment Research raised shares of Fortune Brands Home & Security from a “sell” rating to a “hold” rating in a report on Monday, October 30th. Credit Suisse Group restated an “outperform” rating and set a $80.00 target price (up previously from $74.00) on shares of Fortune Brands Home & Security in a research report on Monday, January 22nd. They noted that the move was a valuation call. Robert W. Baird restated a “buy” rating and set a $72.00 target price on shares of Fortune Brands Home & Security in a research report on Tuesday, October 24th. JPMorgan Chase & Co. lifted their price target on shares of Fortune Brands Home & Security from $70.00 to $78.00 and gave the company an “overweight” rating in a report on Monday, October 30th. Finally, Citigroup lifted their price target on shares of Fortune Brands Home & Security from $68.00 to $71.00 and gave the company a “neutral” rating in a report on Friday, October 27th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $73.31.

Shares of Fortune Brands Home & Security (NYSE:FBHS) opened at $63.15 on Tuesday. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.13 and a current ratio of 1.77. Fortune Brands Home & Security has a 1 year low of $56.19 and a 1 year high of $73.62. The firm has a market cap of $9,367.63, a PE ratio of 20.64, a P/E/G ratio of 1.40 and a beta of 1.33.

Fortune Brands Home & Security (NYSE:FBHS) last announced its quarterly earnings data on Thursday, February 1st. The industrial products company reported $0.80 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.80. The business had revenue of $1.38 billion during 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 company’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.71 EPS. research analysts expect that Fortune Brands Home & Security will post 3.63 earnings per share for the current year.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 14th. Shareholders of record on Friday, February 23rd will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.27%. This is a positive change from Fortune Brands Home & Security’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Thursday, February 22nd. Fortune Brands Home & Security’s payout ratio is presently 23.53%.

Fortune Brands Home & Security declared that its board has initiated a share repurchase plan on Monday, December 11th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the industrial products company to purchase shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

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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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