Shares of Interface (NASDAQ:TILE) received a significant boost as Wall Street Zen upgraded the company from a buy rating to a strong-buy rating in a research report published on October 28, 2023. This upgrade follows a series of positive assessments from various analysts, indicating growing confidence in the company’s performance.
In addition to Wall Street Zen’s upgrade, Weiss Ratings also elevated Interface’s rating from a “hold (C+)” to a “buy (B-)” on the same day. Zacks Research followed suit, raising its rating from a “hold” to a “strong-buy” on November 3, 2023. Meanwhile, Barrington Research reaffirmed an “outperform” rating while setting a price target of $32.00 for the company’s shares on October 31, 2023.
Analyst sentiment appears largely favorable, with one research analyst granting a Strong Buy rating and two others issuing Buy ratings. According to data from MarketBeat, Interface currently holds an average rating of “Buy” and a consensus price target of $32.00.
Strong Quarterly Earnings Report
Interface reported its quarterly earnings on October 31, 2023, revealing earnings per share (EPS) of $0.61. This figure surpassed analysts’ consensus estimates of $0.46 by $0.15. The company generated revenue of $364.53 million during the quarter, exceeding expectations of $358.19 million.
The firm also noted a net margin of 7.08% and a return on equity of 18.97%. Compared to the same quarter last year, revenue increased by 5.9%. In the previous year, Interface had reported an EPS of $0.48. Looking ahead, the company has set its fiscal year 2025 guidance at EPS, with analysts forecasting an EPS of $1.37 for the current year.
Dividend and Insider Transactions
Recently, Interface declared a quarterly dividend of $0.02 per share, which was paid on September 12, 2023. Shareholders of record as of August 29, 2023, received this dividend, representing an annualized yield of 0.3%. The company’s payout ratio stands at 4.17%.
In other developments, Vice President James Poppens sold 5,000 shares on August 21, 2023, at an average price of $26.14, totaling $130,700. Following this transaction, Poppens retains 124,616 shares, valued at approximately $3,257,462.24. This sale represents a 3.86% reduction in his ownership.
Additionally, Chief Financial Officer Bruce Andrew Hausmann sold 25,000 shares on August 27, 2023, at an average price of $26.95, amounting to $673,750. Hausmann now holds 145,403 shares worth approximately $3,918,610.85, reflecting a 14.67% decrease in his position.
Insider ownership accounts for 2.30% of the company’s shares.
Institutional Investors’ Involvement
Recent activity from institutional investors also indicates a growing interest in Interface. IFP Advisors Inc boosted its position by 2,695.2% during the second quarter, now owning 1,174 shares valued at $25,000 after acquiring an additional 1,132 shares.
Other notable institutional movements include TD Private Client Wealth LLC purchasing a new stake in the third quarter valued at approximately $32,000, while Blue Trust Inc. and EverSource Wealth Advisors LLC each acquired stakes valued at around $34,000 and $35,000, respectively.
Overall, institutional investors control 98.34% of Interface’s stock, indicating strong confidence in the company’s future prospects.
Company Overview
Interface, Inc. designs, produces, and sells modular carpet products globally. The company operates in two primary segments: the Americas (AMS) and Europe, Africa, Asia, and Australia (EAAA). Interface offers products under the Interface and FLOR brand names, which include modular carpets, luxury vinyl tiles, and specialized carpet tiles for various commercial and residential applications.
The recent upgrades and positive earnings report position Interface favorably in the market, reflecting a potential growth trajectory that investors will be keen to monitor.
