Fortune Brands Home & Security (NYSE:FBHS) to Buyback $250.00 million in Stock

Fortune Brands Home & Security (NYSE:FBHS) declared that its Board of Directors has initiated a share buyback plan, which authorizes the company to buyback $250.00 million in outstanding shares on Monday, December 11th, EventVestor reports. This buyback authorization authorizes the industrial products company to buy shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Shares of Fortune Brands Home & Security (FBHS) traded down $0.34 on Friday, reaching $68.44. 658,321 shares of the company’s stock traded hands, compared to its average volume of 872,931. The company has a quick ratio of 1.17, a current ratio of 1.87 and a debt-to-equity ratio of 0.57. The firm has a market cap of $10,440.86, a PE ratio of 23.60, a P/E/G ratio of 2.15 and a beta of 1.42. Fortune Brands Home & Security has a 12 month low of $53.15 and a 12 month high of $69.76.

Fortune Brands Home & Security (NYSE:FBHS) last announced its quarterly earnings data on Wednesday, October 25th. The industrial products company reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.01. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.38 billion. Fortune Brands Home & Security had a net margin of 8.62% and a return on equity of 18.64%. Fortune Brands Home & Security’s revenue was up 5.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.80 EPS. sell-side analysts anticipate that Fortune Brands Home & Security will post 3.07 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 14th. Shareholders of record on Friday, February 23rd will be given a dividend of $0.20 per share. This is a positive change from Fortune Brands Home & Security’s previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a dividend yield of 1.17%. The ex-dividend date of this dividend is Thursday, February 22nd. Fortune Brands Home & Security’s payout ratio is presently 24.83%.

FBHS has been the topic of several recent analyst reports. Zacks Investment Research downgraded shares of Fortune Brands Home & Security from a “hold” rating to a “sell” rating in a report on Tuesday, October 3rd. Citigroup increased their target price on shares of Fortune Brands Home & Security from $68.00 to $71.00 and gave the company a “neutral” rating in a research report on Friday, October 27th. Royal Bank of Canada restated a “buy” rating and set a $75.00 price objective on shares of Fortune Brands Home & Security in a research report on Monday, September 25th. JPMorgan Chase & Co. lifted their price target on shares of Fortune Brands Home & Security from $70.00 to $78.00 and gave the company an “overweight” rating in a research report on Monday, October 30th. Finally, Credit Suisse Group lifted their price target on shares of Fortune Brands Home & Security from $72.00 to $74.00 and gave the company an “outperform” rating in a research report on Thursday, October 26th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $71.17.

In related news, CEO Christopher J. Klein sold 85,000 shares of the business’s stock in a transaction dated Friday, October 27th. The shares were sold at an average price of $67.13, for a total value of $5,706,050.00. The transaction was disclosed in a document filed with the SEC, which is available through this link. 1.61% of the stock is owned by insiders.

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About Fortune Brands Home & Security

Fortune Brands Home & Security, Inc is a holding company. The Company operates through four segments. The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names, including Aristokraft, Mid-Continent, Diamond, Kitchen Classics, Kitchen Craft, Schrock, Omega, Homecrest, Thomasville, StarMark and Ultracraft.

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