Franchise Group (NASDAQ:FRG) Shares Gap Down Following Weak Earnings

Shares of Franchise Group, Inc. (NASDAQ:FRGGet Rating) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $34.12, but opened at $32.05. Franchise Group shares last traded at $31.79, with a volume of 6,176 shares trading hands.

The company reported $1.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.23 by ($0.04). Franchise Group had a net margin of 9.61% and a return on equity of 26.34%. The firm had revenue of $1.09 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the previous year, the business posted $1.16 earnings per share. The business’s quarterly revenue was up 26.8% compared to the same quarter last year.

Franchise Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Friday, September 30th will be paid a $0.625 dividend. The ex-dividend date is Thursday, September 29th. This represents a $2.50 dividend on an annualized basis and a yield of 7.98%. Franchise Group’s payout ratio is presently 28.97%.

Analyst Ratings Changes

Separately, B. Riley lowered their target price on shares of Franchise Group from $63.00 to $49.00 in a research note on Friday.

Insider Buying and Selling at Franchise Group

In related news, CEO Brian Randall Kahn purchased 100,000 shares of Franchise Group stock in a transaction on Monday, May 9th. The stock was purchased at an average cost of $37.50 per share, with a total value of $3,750,000.00. Following the acquisition, the chief executive officer now directly owns 8,864,610 shares in the company, valued at $332,422,875. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 32.30% of the company’s stock.

Institutional Trading of Franchise Group

A number of hedge funds have recently bought and sold shares of the stock. TFO TDC LLC bought a new position in shares of Franchise Group during the 1st quarter worth about $27,000. Point72 Hong Kong Ltd bought a new position in shares of Franchise Group during the 4th quarter worth about $46,000. Counterpoint Mutual Funds LLC bought a new position in shares of Franchise Group during the 1st quarter worth about $84,000. Great West Life Assurance Co. Can lifted its holdings in shares of Franchise Group by 44.2% during the 1st quarter. Great West Life Assurance Co. Can now owns 2,308 shares of the company’s stock worth $100,000 after acquiring an additional 707 shares during the period. Finally, Lazard Asset Management LLC bought a new position in shares of Franchise Group during the 4th quarter worth about $105,000. 45.51% of the stock is owned by institutional investors.

Franchise Group Stock Down 8.1 %

The business’s fifty day moving average price is $35.13 and its 200 day moving average price is $39.84. The company has a market capitalization of $1.26 billion, a P/E ratio of 3.63, a P/E/G ratio of 0.47 and a beta of 1.61. The company has a current ratio of 1.42, a quick ratio of 0.75 and a debt-to-equity ratio of 1.71.

About Franchise Group

(Get Rating)

Franchise Group, Inc owns and operates franchised and franchisable 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 the BodyTech, True Athlete, plnt, The Vitamin Shoppe, ProBioCare, Fitfactor Weight Management System, and Vthrive The Vitamin Shoppe brands.

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