Franchise Group, Inc. (NASDAQ:FRG) Sees Significant Increase in Short-Term Interest
Franchise Group, Inc. (NASDAQ:FRG – Get Rating) was the target of significant short-term interest growth in February. As of February 28, there was short interest totaling 1,760,000 shares, a growth of 50.4% from the February 13 total of 1,170,000 shares. Based on an average trading volume of 263,400 shares, the day-to-cover ratio is currently 6.7 days. Currently, 6.5% of the company’s shares are sold short.
NASDAQ:FRG opened at $42.50 on Monday. The company has a current ratio of 1.32, a quick ratio of 0.72 and a debt ratio of 1.81. Franchise Group has a 12-month low of $31.29 and a 12-month high of $55.10. The stock has a 50-day moving average price of $47.18 and a 200-day moving average price of $44.10. The stock has a market capitalization of $1.71 billion, a P/E ratio of 4.90, a P/E/G ratio of 0.56 and a beta of 1.82.
Franchise Group (NASDAQ:FRG – Get Rating) last announced its quarterly results on Wednesday, February 23. The company reported EPS of $0.77 for the quarter, beating consensus analyst estimates of $0.75 by $0.02. Franchise Group achieved a return on equity of 27.31% and a net margin of 11.18%. The company posted revenue of $942.80 million in the quarter, compared to analyst estimates of $849.32 million. In the same period of the previous year, the company had earned earnings per share of ($0.12). The company’s revenue increased 90.0% year over year. On average, research analysts predict that Franchise Group will post earnings per share of 4.97 for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, April 15. Shareholders of record on Friday, April 1 will receive a dividend of $0.625. This represents an annualized dividend of $2.50 and a dividend yield of 5.88%. The ex-dividend date is Thursday, March 31. The Franchise Group payout ratio is 28.84%.
FRG has been the subject of a number of research reports. B. Riley raised his price target on Franchise Group from $58.00 to $65.00 and gave the company a “buy” rating in a Tuesday, November 23 research report. Barrington Research raised its price target on Franchise Group from $58.00 to $65.00 and gave the company an “outperform” rating in a Wednesday, Dec. 8 research report. Zacks Investment Research upgraded Franchise Group from a “buy” to a “hold” rating in a Monday, February 28 research report. Finally, Aegis raised its price target on Franchise Group from $50.00 to $61.00 and gave the stock a “buy” rating in a Tuesday, November 23 research report. One research analyst gave the stock a hold rating and four gave the company’s stock a buy rating. According to MarketBeat, Franchise Group currently has a consensus rating of “Buy” and a consensus price target of $59.80.
In other Franchise Group news, Director Patrick A. Cozza purchased 4,000 shares in a trade dated Monday, March 7. The shares were purchased at an average cost of $41.00 per share, with a total value of $164,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available via this link. Insiders hold 30.10% of the shares of the company.
Major investors have recently been buying and selling shares of the company. Point72 Hong Kong Ltd bought a new stake in Franchise Group shares in Q4 worth around $46,000. Financial Management Professionals Inc. purchased a new stake in Franchise Group stock in Q4 valued at approximately $65,000. Royal Bank of Canada increased its stake in Franchise Group shares by 29.3% in Q2. Royal Bank of Canada now owns 1,953 shares of the company valued at $68,000 after buying 442 more shares in the last quarter. Advisor Group Holdings Inc. increased its holdings of Franchise Group shares by 7,203.7% in the third quarter. Advisor Group Holdings Inc. now owns 1,972 shares of the company worth $70,000 after purchasing an additional 1,945 shares during the period. Finally, Captrust Financial Advisors increased its holding in Franchise Group shares by 44.9% in the third quarter. Captrust Financial Advisors now owns 1,985 shares of the company worth $71,000 after purchasing an additional 615 shares during the period. 47.41% of the shares are held by institutional investors and hedge funds.
About the Franchise Group (Get an assessment)
Franchise Group, Inc. is a holding company that provides tax preparation and related services and products. It operates through the following segments: Vitamin Shoppe, American Freight, Liberty Tax and Buddy’s. The Vitamin Shoppe segment is an omnichannel specialty retailer of vitamins, herbs, specialty supplements, sports nutrition and other health and wellness products.
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