Five Below (NASDAQ:FIVE) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Five Below (NASDAQ:FIVE) from a hold rating to a buy rating in a report published on Tuesday morning, Zacks.com reports. They currently have $197.00 target price on the specialty retailer’s stock.

According to Zacks, “Shares of Five Below have risen and outpaced the industry in the past six months. The company’s focus on providing trend-right products, improving supply chain, strengthening digital capabilities and delivering better WOW products bode well. The company commenced fiscal 2021 on a strong note, posting better-than-expected first-quarter results, wherein both the top and bottom lines grew year over year and even surpassed pre-pandemic level. Comparable sales also increased significantly during the quarter under review. Markedly, management provided an upbeat view for the second quarter. Well, the company’s business model, financial strength, store growth opportunities and upside potential offered by Five Beyond make us optimistic. However, the impact of any deleverage in SG&A expenses and supply chain constraints cannot be ruled out.”

Several other research analysts have also weighed in on the stock. Telsey Advisory Group boosted their price objective on shares of Five Below from $230.00 to $240.00 and gave the stock an outperform rating in a research note on Friday, June 4th. Jefferies Financial Group boosted their price objective on shares of Five Below from $260.00 to $300.00 and gave the stock a buy rating in a research note on Friday, June 4th. Royal Bank of Canada boosted their price objective on shares of Five Below from $225.00 to $234.00 and gave the stock an outperform rating in a research note on Friday, June 4th. Wells Fargo & Company boosted their price objective on shares of Five Below from $215.00 to $235.00 and gave the stock an overweight rating in a research note on Thursday, March 18th. Finally, Barclays boosted their price objective on shares of Five Below from $180.00 to $205.00 and gave the stock an equal weight rating in a research note on Thursday, March 18th. They noted that the move was a valuation call. Six analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. The company currently has an average rating of Buy and a consensus target price of $211.60.

Shares of FIVE stock opened at $186.53 on Tuesday. Five Below has a 1 year low of $96.61 and a 1 year high of $205.28. The company has a fifty day simple moving average of $190.78. The firm has a market cap of $10.44 billion, a price-to-earnings ratio of 46.98, a P/E/G ratio of 1.28 and a beta of 1.28.

Five Below (NASDAQ:FIVE) last issued its quarterly earnings results on Wednesday, June 2nd. The specialty retailer reported $0.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.23. The firm had revenue of $597.80 million for the quarter, compared to analyst estimates of $555.21 million. Five Below had a net margin of 9.48% and a return on equity of 27.01%. The company’s revenue was up 197.6% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.91) EPS. As a group, equities research analysts predict that Five Below will post 4.47 earnings per share for the current year.

In related news, CMO Michael Romanko sold 2,427 shares of the company’s stock in a transaction that occurred on Thursday, April 1st. The shares were sold at an average price of $195.01, for a total transaction of $473,289.27. Following the completion of the transaction, the chief marketing officer now directly owns 12,529 shares in the company, valued at approximately $2,443,280.29. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Catherine Elizabeth Buggeln sold 5,500 shares of the company’s stock in a transaction that occurred on Friday, March 19th. The stock was sold at an average price of $194.28, for a total transaction of $1,068,540.00. Following the transaction, the director now owns 11,778 shares of the company’s stock, valued at $2,288,229.84. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 17,006 shares of company stock valued at $3,360,898. 1.80% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. The PNC Financial Services Group Inc. increased its position in Five Below by 34.0% in the 1st quarter. The PNC Financial Services Group Inc. now owns 16,669 shares of the specialty retailer’s stock valued at $3,180,000 after acquiring an additional 4,229 shares during the period. Morgan Stanley increased its position in Five Below by 6.0% in the 4th quarter. Morgan Stanley now owns 508,329 shares of the specialty retailer’s stock valued at $88,946,000 after acquiring an additional 28,564 shares during the period. Comerica Bank increased its position in Five Below by 17.5% in the 1st quarter. Comerica Bank now owns 70,455 shares of the specialty retailer’s stock valued at $13,784,000 after acquiring an additional 10,509 shares during the period. Captrust Financial Advisors boosted its stake in shares of Five Below by 24.5% in the 4th quarter. Captrust Financial Advisors now owns 7,127 shares of the specialty retailer’s stock valued at $1,247,000 after purchasing an additional 1,403 shares during the last quarter. Finally, Envestnet Asset Management Inc. boosted its stake in shares of Five Below by 10.6% in the 1st quarter. Envestnet Asset Management Inc. now owns 158,213 shares of the specialty retailer’s stock valued at $30,185,000 after purchasing an additional 15,161 shares during the last quarter.

Five Below Company Profile

Five Below, Inc operates as a specialty value retailer in the United States. It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and T-shirts, as well as nail polishes, lip glosses, fragrances, and branded cosmetics; and items used to complete and personalize living space, including glitter lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, and related items, as well as provides storage options for the customers room.

Featured Article: Trading Options- What is a Strangle?

Get a free copy of the Zacks research report on Five Below (FIVE)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Five Below (NASDAQ:FIVE)

Receive News & Ratings for Five Below Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Five Below and related companies with MarketBeat.com's FREE daily email newsletter.