Zacks Investment Research has improved the shares of Franchise Group (NASDAQ:FRG – Get an assessment) from a sell rating to a hold rating in a report released Thursday morning, Zacks.com reports.

According to Zacks, “Franchise Group Inc. is the indirect parent company of Liberty Tax Service and Buddy’s Home Furnishings. It focuses on the valuation and acquisition of franchise or add-on businesses. The company also owns Buddy’s Home Furnishings, a retailer specializing in the rental and sale of consumer electronics, home furnishings, appliances and home accessories. Franchise Group Inc., formerly known as Liberty Tax Inc., is based in Virginia Beach, USA. “

FRG shares opened at $38.41 on Thursday. Franchise Group has a 12-month low of $32.12 and a 12-month high of $55.10. The company has a quick ratio of 0.72, a current ratio of 1.32 and a debt ratio of 1.81. The company’s 50-day moving average is $43.10 and its two-hundred-day moving average is $45.15. The company has a market capitalization of $1.55 billion, a PE ratio of 4.43, a growth price-earnings ratio of 0.53 and a beta of 1.80.

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 the consensus estimate 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 for the quarter, versus a consensus estimate of $849.32 million. In the same quarter last year, the company posted ($0.12) earnings per share. The company’s revenue for the quarter increased by 90.0% compared to the same quarter last year. As a group, equity analysts expect Franchise Group to post EPS of 4.95 for the current fiscal year.

The company also recently declared 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 per share. The ex-date of this dividend is Thursday, March 31. This represents an annualized dividend of $2.50 and a yield of 6.51%. Franchise Group’s dividend payout ratio (DPR) is currently 28.84%.

In other Franchise Group news, Director Patrick A. Cozza acquired 4,000 shares of Franchise Group in a transaction dated Monday, March 7. The stock was purchased at an average cost of $41.00 per share, with a total value of $164,000.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available on the SEC’s website. Additionally, director Patrick A. Cozza acquired 2,000 Franchise Group shares in a transaction dated Friday, March 11. The shares were acquired at an average cost of $42.50 per share, with a total value of $85,000.00. Disclosure of this purchase can be found here. Insiders of the company own 30.10% of the shares of the company.

Several institutional investors and hedge funds have recently bought and sold shares of FRG. Point72 Hong Kong Ltd bought a new stake in shares of Franchise Group in the fourth quarter worth around $46,000. Financial Management Professionals Inc. bought a new position in Franchise Group in the fourth quarter worth $65,000. Royal Bank of Canada increased its position in Franchise Group by 29.3% in the second quarter. Royal Bank of Canada now owns 1,953 shares of the company worth $68,000 after purchasing an additional 442 shares during the period. Advisor Group Holdings Inc. increased its position in Franchise Group 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 position in Franchise Group 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.

Franchise Group Company Profile (Get a rating)

Franchise Group, Inc. owns and operates franchise and franchiseable businesses. It operates through six segments: Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy’s and Sylvan. The Vitamin Shoppe segment operates as an omnichannel specialty retailer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products under BodyTech, True Athlete, plnt, The Vitamin Shoppe, ProBioCare, Fitfactor Weight Management System and Vthrive Vitamin Shoppe brands.

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