Mizuho Lowers Price Target for Five Below

On Thursday, analysts at Mizuho announced a decrease in their price target for Five Below (NASDAQ:FIVE) from $105.00 to $88.00. They maintained a "neutral" rating on the shares of the specialty retailer. This new price objective suggests that there is an upside potential of around 8.64% based on the stock's closing price before the announcement.

Other Analyst Reports

In addition to Mizuho's revision, several other research firms have also updated their ratings and price targets for Five Below. Barclays has reduced its price target from $100.00 to $93.00 while maintaining an "equal weight" rating. Meanwhile, The Goldman Sachs Group raised its target from $106.00 to $122.00 and assigned a "buy" rating. Morgan Stanley reiterated an "equal weight" rating on the stock, while Guggenheim set a higher target of $140.00 after previously being at $125.00, also giving it a "buy" rating. UBS Group has lowered its price target from $150.00 to $110.00 but has kept a "buy" rating on Five Below. The consensus shows that three analysts rate it a sell, twelve a hold, and six a buy, resulting in an average rating of "Hold" with an average price target of $104.00.

Recent Stock Performance

On the same day of the announcement, Five Below's stock saw an increase, trading up by $5.41 to reach $81.00. The company experienced a trading volume of 4,158,950 shares, significantly higher than its usual volume of 1,755,327 shares. The stock has a 52-week low of $64.87 and a high of $209.79. Currently, the stock trades with a fifty-day simple moving average of $88.76 and a 200-day simple moving average of $92.63. Its market capitalization stands at $4.46 billion, with a price-to-earnings ratio of 16.70 and a price-to-earnings-to-growth ratio of 1.19.

Quarterly Earnings

Five Below most recently reported its quarterly earnings results on March 19th. The retailer announced that its earnings per share were $3.48, surpassing the consensus estimate of $3.38 by $0.10. The reported revenue was $1.39 billion, which was almost in line with the analyst estimates of $1.38 billion. The company's return on equity was recorded at 18.03%, with a net margin of 7.02%. Year-over-year, revenue increased by 4.0%. During the same quarter a year earlier, the retailer’s earnings per share were $3.65. Analysts predict that Five Below will report earnings per share of 4.93 for the current fiscal year.

Insider Activity

In recent insider trading news, Chief Accounting Officer Eric M. Specter sold 5,494 shares of Five Below stock on January 16th at an average price of $90.76, totaling approximately $498,635.44. Following this transaction, he holds about 57,267 shares, valued at around $5.2 million, indicating an 8.75% decrease in his ownership in the company. As per recent filings, corporate insiders own about 1.90% of the stock.

Institutional Investor Actions

Several institutional investors and hedge funds have made moves regarding Five Below’s shares recently. KBC Group NV increased its stake in the retailer by 23.7% during the third quarter, now owning 1,630 shares valued at around $144,000 after acquiring an additional 312 shares. Meanwhile, B. Metzler seel. Sohn & Co. Holding AG entered a new position valued at about $1,765,000 during the same period. Charles Schwab Investment Management raised its stake by 41.7%, owning now 614,288 shares valued at approximately $54.27 million after buying an additional 180,902 shares. Algert Global LLC saw a significant growth in its holdings by 364.2%, now possessing 25,830 shares worth $2.28 million. Lastly, Dynamic Technology Lab Private Ltd also made a new investment worth about $3.28 million.

Company Overview

Five Below, Inc operates as a specialty value retailer primarily in the United States. The retail chain offers a variety of products, including accessories such as novelty socks, sunglasses, jewelry, and t-shirts, along with personal care items like nail polish and cosmetics. Additionally, the company provides home products including lamps, posters, and storage solutions.

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