The stock of Franchise Group Inc. (NASDAQ:FRG) decreased by -$0.02 on Friday to finish at $29.75, down -0.07 percent. The last five days have seen an average of 756,800 shares of common stock traded. 8 times new highs were reached in the current year, with a gain of $5.93. The average number of shares traded over the last 20 days was 695,105, while the average volume over the last 50 days totaled 723,042.
FRG stock appreciated 2.76% since last month. On 07/12/23, the company’s shares reached a one-month low of $28.85. The stock touched a high of $38.24 on 02/02/23, after rallying from a low of $22.45 in 52 weeks. The price of FRG stock has risen by 24.90% or $5.93 this year, reaching a new high 8 times. Still, the stock price is down -22.20% from the 52-week high.
Insider Transactions
FRG stock investors should be aware that Franchise Group Inc. (FRG) stock had its last reported insider trading activity 165 days ago on Mar 02. On Mar 02, CHIEF FRANCHISING OFFICER EVANS K TODD acquired 389 shares at $31.64 each. This transaction resulted in the insider spending $12,308. On Feb 23, Avril Matthew E added 138 shares at a price of US$31.63. After the transaction, the insider now owns 123,620 shares. Director HERSKOVITS THOMAS had earlier bought 85 shares on Feb 23 for $31.63 a share. The transaction was completed for $2,689.
Valuation Metrics
Beta for the stock is 1.68. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.24, the price-to-book (PB) ratio of 4.64.
Company paid $0.6250 per share in dividends, remained unchanged from $0.6250 last year. A $0.25 dividend increase was reported on Tuesday December 7 2021.
Financial Health
For the three months ended June 29, Franchise Group Inc.’s quick ratio was 0.60, while its current ratio was 1.40, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 6.97, and the total debt to equity ratio is 8.54. As far as profitability goes, gross margin for the trailing twelve months is 39.80% percent. Franchise Group Inc.’s EBITDA margin for the year ended June 29 was 9.25%, whereas its operating margin stood at 0.20% for the same period. Based on annual data, it had gross profit of $1.86 billion and revenue of $4.4 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. FRG’s return on assets (ROA) during the last 12 months has been -8.00%. There was a 10.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -78.80%.
Earnings Surprise
According to Franchise Group Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.12 billion, while revenues rose by 15.56% to $1.05 billion. It was predicted that Franchise Group Inc.’s quarterly earnings would be -$0.22, but it ended up being $0.27, beating the consensus by -181.50%. EBITDA was $47.89 million for the quarter. At the end of Franchise Group Inc.’s most recent quarter ended June 29, its liabilities totaled 3.35 billion, while its total debt was $2.83 billion. Equity owned by shareholders amounts to $35.19 million.
Technical Picture
Here’s a quick look at Franchise Group Inc.’s (FRG) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 63.70%, suggesting the stock is Neutral, with a 2.10% historical volatility rate.
The stochastic %K and %D were 77.78% and 78.18% respectively, while the average true range (ATR) was 0.09. Based on the 14-day stochastic reading of 66.67%, the RSI (14) reading is 63.78%. On the 9-day MACD Oscillator, the stock is at 0.02, and the 14-day reading is at 0.03.
Analyst Ratings
Franchise Group Inc. (NASDAQ: FRG) was downgraded by CJS Securities to a a Market perform rating in its latest research report. The stock was previously rated as a a Market outperform. Analysts have assigned Franchise Group Inc. (FRG) an Hold rating. FRG is a stock that is recommended for selling by 0 brokerage firms, while 3 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 0 others recommend it as a buy.
What is FRG’s price target for the next 12 months?
The current consensus forecast for the stock is between $30.00 and $30.00, with a median target price of $30.00. In analyzing these forecasts, the average price target given by analysts for Franchise Group Inc. (FRG) is $30.00.
