Franchise Group, Inc. (NASDAQ:FRG – Get Rating) declared a quarterly dividend on Tuesday, August 2, Zacks reports. Shareholders of record on Friday, September 30 will receive a dividend of 0.625 per share on Friday, October 14. This represents a dividend of $2.50 on an annualized basis and a yield of 7.14%. The ex-dividend date is Thursday, September 29.
Franchise Group has a dividend payout ratio of 46.9%, which means its dividend is sufficiently covered by earnings. Stock analysts expect Franchise Group to earn $5.28 per share next year, meaning the company should continue to be able to cover its $2.50 annual dividend with a payout ratio. expected future of 47.3%.
Performance of Franchise Group shares
FRG opened at $35.00 on Thursday. Franchise Group has a 52-week minimum of $29.66 and a 52-week maximum of $55.10. The company has a market capitalization of $1.41 billion, a PE ratio of 4.06, a PEG ratio of 0.46 and a beta of 1.61. The company has a debt ratio of 1.71, a quick ratio of 0.75 and a current ratio of 1.42. The company’s 50-day simple moving average is $35.41 and its 200-day simple moving average is $40.08.
Franchise Group (NASDAQ:FRG – Get Rating) last released its quarterly earnings data on Thursday, May 5. The company reported earnings per share (EPS) of $1.29 for the quarter, beating the consensus estimate of $1.08 by $0.21. The company posted revenue of $1.14 billion for the quarter, versus analyst estimates of $1.08 billion. Franchise Group achieved a return on equity of 26.34% and a net margin of 9.61%. The company’s revenue for the quarter increased by 82.7% compared to the same quarter last year. In the same quarter of the previous year, the company had earned earnings per share of $0.90. As a group, sell-side analysts expect Franchise Group to post earnings per share of 4.97 for the current fiscal year.
Wall Street analysts predict growth
Separately, B. Riley lowered his target price on Franchise Group from $65.00 to $63.00 in a Friday, May 6 research report.
In related news, CEO Brian Randall Kahn bought 100,000 shares of the company in a trade on Monday, May 9. The shares were acquired at an average price of $37.50 per share, for a total transaction of $3,750,000.00. Following the purchase, the CEO now owns 8,864,610 shares of the company, valued at $332,422,875. The transaction was disclosed in a filing with the SEC, which is available at this link. 32.30% of the shares are currently held by insiders of the company.
Institutional entries and exits
A number of hedge funds have recently changed their positions in the business. Bank of America Corp DE increased its stake in Franchise Group by 28.0% in the first quarter. Bank of America Corp DE now owns 125,682 shares of the company worth $5,207,000 after buying an additional 27,484 shares in the last quarter. Cannell Capital LLC increased its stake in Franchise Group by 31.9% during the first quarter. Cannell Capital LLC now owns 808,762 shares of the company valued at $33,507,000 after purchasing an additional 195,510 shares during the period. Avalon Investment & Advisory increased its equity stake in Franchise Group by 12.4% in the first quarter. Avalon Investment & Advisory now owns 64,277 shares of the company worth $2,663,000 after acquiring an additional 7,066 shares during the period. Jane Street Group LLC bought a new position in Franchise Group during the first quarter, valued at approximately $242,000. Finally, KB Financial Partners LLC increased its stake in Franchise Group by 24.3% during the first quarter. KB Financial Partners LLC now owns 7,324 shares of the company valued at $303,000 after purchasing an additional 1,432 shares in the last quarter. 45.51% of the shares are currently held by hedge funds and other institutional investors.
About the Franchise Group
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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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