Franchise Group (NASDAQ:FRG – Get an assessment) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report released Tuesday, 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. “

NASDAQ:FRG shares fell $1.82 on Tuesday, hitting $37.88. 184,249 shares of the company were traded, against an average volume of 266,877. The company has a fifty-day moving average of $41.74 and a 200-day moving average of $45.32. Franchise Group has a 12-month low of $32.12 and a 12-month high of $55.10. The company has a market capitalization of $1.53 billion, a price/earnings ratio of 4.37, a PEG ratio of 0.54 and a beta of 1.80. The company has a current ratio of 1.32, a quick ratio of 0.72 and a debt ratio of 1.81.

Franchise Group (NASDAQ:FRG – Get Rating) last announced its results on Wednesday, February 23. The company reported earnings per share (EPS) of $0.77 for the quarter, beating the Zacks consensus estimate of $0.75 by $0.02. The company posted revenue of $942.80 million for the quarter, versus analyst estimates of $849.32 million. Franchise Group achieved a net margin of 11.18% and a return on equity of 27.31%. The company’s revenues increased by 90.0% compared to the same quarter last year. In the same quarter of the previous year, the company recorded EPS of ($0.12). As a group, equity research analysts expect Franchise Group to post EPS of 4.95 for the current fiscal year.

In other Franchise Group news, Director Patrick A. Cozza purchased 4,000 shares of the company in a trade dated Monday, March 7. The shares were purchased at an average price of $41.00 per share, with a total value of $164,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, accessible via this hyperlink. Additionally, director Patrick A. Cozza purchased 2,000 shares of the company in a trade 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 hedge funds have recently increased or reduced their holdings in FRG. Allspring Global Investments Holdings LLC purchased a new position in Franchise Group stock during the fourth quarter worth $53,289,000. Select Equity Group LP increased its stake in Franchise Group by 36.7% during the fourth quarter. Select Equity Group LP now owns 770,927 shares of the company worth $40,212,000 after purchasing an additional 207,094 shares in the last quarter. Two Sigma Investments LP increased its stake in Franchise Group by 149.9% during the third quarter. Two Sigma Investments LP now owns 206,328 shares of the company worth $7,306,000 after purchasing an additional 123,769 shares in the last quarter. Morgan Stanley increased its stake in Franchise Group by 226.7% during the second quarter. Morgan Stanley now owns 163,169 shares of the company worth $5,754,000 after buying an additional 113,230 shares in the last quarter. Finally, Putnam Investments LLC purchased a new position in Franchise Group during the third quarter worth $3,820,000. 47.41% of the shares are held by hedge funds and other institutional investors.

About the Franchise Group (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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