NEWS BITES - NORTH AMERICA
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), the NASDAQ's 9th largest Internet commerce company by market cap, has increased 2.0c (0.1%) from its last trading session of February 08 to close at $US16.95. Compared with the NASDAQ-100 Index which fell 4.0 points (0.06%) in the day, the relative price increase was 0.2%. The volume of 318,942 shares was close to average trading. 1-800- Flower.com Class A's stock's open interest climbed 5.1% from 565 to 594. Combined with the price increase, this suggests a strong stock price. Its MCap is $US610.8 million.
1-800- Flower.com Class A (NASDAQ:FLWS) institutional shareholder Blackrock Inc. (CIK:0001364742) bought 37,355 shares in the quarter ended December 31, 2018 worth $US456,852 at an estimated Volume Weighted Average Price (VWAP) of USD12.18. At the end of the quarter Blackrock Inc. held 1,914,106 shares worth $US23.3 million, representing 5.30% of the issued capital of 1-800- Flower.com Class A.
1-800- Flower.com Class A (NASDAQ:FLWS) institutional shareholder California Public Employees Retirement System (CIK:0000919079) sold 23,877 shares in the quarter ended December 31, 2018 worth $US292,016 at an estimated Volume Weighted Average Price (VWAP) of USD12.18. At the end of the quarter California Public Employees Retirement System held 124,847 shares worth $US1.5 million.
Highlights in today's Report:
SECTION 1 BULLISH SIGNALS incl. Short Selling and Open Interest
SECTION 2 BEARISH SIGNALS
SECTION 3 PRICE VOLUME DYNAMICS
SECTION 4 RELATED NEWS
SECTION 5 REPORTED BUYING AND SELLING
SECTION 6 SUMMARY FINANCIALS
SECTION 7 PROFILE
SECTION 1 1-800- FLOWER.COM CLASS A BULLISH SIGNALS
1.1 Short Selling and Open Interest:
+ The current short volume is 0.9 times its own historical average of 0.2%.
+ Open Interest Trend
Same day trend: The price increased 0.1% from $US16.93 to $US16.95; Open interest has climbed 5.1% from 565 to 594. A price rise combined with an increase in open interest suggests there is new money coming into the market from existing or new buyers. This is a bullish signal.
|Duration||Open Interest change %||Price change %||Interpretation|
+ Put Call Contracts
Put/Call ratio has declined from 0.205 to 0.195 suggesting an uptrend.
|Put Contracts||Call Contracts||Put/Call ratio|
+ Top traded call options [1 contract is 100 shares]
|Exercise Price||Exercise Date||Option Price||Change %||Contracts Traded|
|$US17.50||February 15, 2019||20.0c||33.3||1|
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 15.89 minus the 26-day EMA of 14.69 is positive 1.2 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.
+ The 3.4% discount to 12-month high of $US17.54 against the 69.3% premium to 12-month low of $US10.01 suggests the stock continues to push for new highs.
+ In the last three months the stock has hit a new 52-week high four times, pointing to an uptrend.
+ The stock's relative price strength percentile is rising at 89 for 6 months, 94 for 3 months and 96 for 1 month.
+ The present value of $US1,000 (PV1000) invested one year ago in 1-800- Flower.com Class A is $US1,569, for a capital gain of $US569.
+ The present value of USD1,000 (PV1000) invested ten years ago in 1-800- Flower.com Class A is $US6,700, for a capital gain of $US5,700.
+ 10 years Multiplier in USD = 6.7x
+ Compound Annual Growth Rate (CAGR) in USD = 20.9%
High Performance Indicators and rank of 1-800- Flower.com Class A in the NASDAQ market:
|Description||FLWS Value||Rank In Market|
|Price/MAP50||1.28||In Top 3%|
|Price/MAP200||1.33||In Top 7%|
|% Prem to Vol Wtd Price||7.8||In Top Quartile|
|Price to Sales||0.5||In Top Quartile|
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.1. Compared with the rest of the market the stock is undervalued.
+ Total Liabilities/EBITDA of 3.6 is comfortably below the Joseph Piotroski benchmark of 5.
1.4 Undervaluation [compared with sector average]:
+ Price/Sales of 0.5 [3.3]. We estimate 1-800- Flower.com Class A stock is trading at a current year Price/Sales of 0.5 and a forward year Price/Sales of 0.5.
+ Return on Assets 7.1% [4.5%].
SECTION 2 1-800- FLOWER.COM CLASS A BEARISH SIGNALS
+ The Relative Strength Index (RSI) of 85.9 has penetrated the overbought line of 70, suggesting the price gain of 26.5% in the last 14 days is unusually high.
+ The stock is overbought according to the Williams % R indicator of -12.7, suggesting the price is close to its 14-day high of $US17.54.
Low Performance Indicator and rank of 1-800- Flower.com Class A in the NASDAQ market:
|Description||FLWS Value||Rank In Market|
|EBITDA Margin %||6.1||In Bottom Quartile|
+ Net profit margin has averaged 3.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.
+ As per the Du Pont analysis, Return on Equity [ROE] of 13.0% is lower than sector average of 15.7%. ROE is computed as net profit margin of 3.5% times asset turnover [sales/assets] of 2.0 times leverage factor [total assets/shareholders' equity] of 1.8.
Annual Trend in Revenue, EPS and EBITDA:
5-years average annualized earnings growth rate of 27.1%
+ Revenue growth and EBITDA growth have shown signs of deterioration in recent years. [Year ended, all figures in %]
|Year||Revenue Growth||EPS Growth||EBITDA Growth|
2.3 Overvaluation [compared with sector average]:
+ Return on Equity 13.0% [15.7%].
+ Return on Capital Employed 8.5% [10.9%].
SECTION 3 1-800- FLOWER.COM CLASS A PRICE VOLUME DYNAMICS
+ Volume: there were 307,000 shares worth $US5.2 million traded today. In the past week, volume was 1.9 times average and the shares were down 2.0%. The volume of 318,942 shares was close to average trading.
3.2 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 121.97% (or a turnover period of 9 months). This average length of ownership of the stock at 1.6 times the average holding period of 6 months for stocks in the NASDAQ-100 Index suggests a larger number of core investors, making a long-term investment safer.
3.3 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 30.6%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in FLWS would have produced a return of 56.9%.
|FLWS||Close (USD)||Annual Return %|
|1 Yr ago||10.8||13.1|
|2 Yrs ago||9.55||34.7|
|3 Yrs ago||7.09||(23.8)|
|4 Yrs ago||9.3||72.2|
Close 5 years ago $US5.40
+ Beta: the Beta of 1-800- Flower.com Class A stock is 0.7. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
3.5 The Past Year
+ 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), surged $US6.15 (or 56.9%) in the past year to close at $US16.95 today. Compared with the NASDAQ-100 Index which has risen 7.7% over the same period, this is a relative price increase of 49.2%.
SECTION 4 1-800- FLOWER.COM CLASS A RELATED NEWS
4.1 Analyst Recommendation: Past Week
|Date||Brokerage||Action||Past Rating||Current Rating|
|Feb 06, 2019||Sidoti||Downgrades||Buy||Neutral|
4.2 Other News
+ BSS/News Bites:
1-800-FLOWERS.COM, Inc. is placed 177/2167 in BSS News Bites' ranking of NASDAQ performers in the past year, a percentile ranking of 92.
SECTION 5 1-800- FLOWER.COM CLASS A REPORTED BUYING AND SELLING
5.1 Insider Selling
February 08: 1-800- Flower.com Class A insider sells
1-800- Flower.com Class A (NASDAQ:FLWS) insider Arnold P. Leap sold 2,000 shares worth $US34,060 on February 06. The selling price was $US17.03.
To view the previous 3 months' Releases in full, click here
5.2 Institutional Buying and Selling Quarter Ended September 30
Total reported Institutional buying = 1,079,805 shares
Total reported Institutional selling = 1,278,631 shares
Net reported institutional selling = 198,826 shares
5.3 Reported Holdings of Institutions as at Sep 30, 2018
Total = 21,710,895 shares
Market Value = $US256.2 million
SECTION 6 1-800- FLOWER.COM CLASS A SUMMARY FINANCIALS
|Year ended||Jul 2018||Jul 2017||Jul 2016|
|Sales (USD B)||1.2||1.2||1.2|
|Pretax (USD M)||38||56||51.4|
|Net (USD M)||40.8||44||36.9|
+ Net profit was down 7.4% from US$44 million in 2017 to US$40.8 million in 2018.
+ Earnings Per Share (EPS) was down 7.4% from 68.0c to 63.0c.
SECTION 7 1-800- FLOWER.COM CLASS A PROFILE
1-800-FLOWERS.COM, Inc. (1-800-FLOWERS.COM) is a florist and gift shop. The Company offers a range of products, including flowers, floral arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, candy and wine, home and garden merchandise, and toys and games for children. The Company's BloomNet international floral wire service provides a range of products and value-added services designed to help professional florists. The 1-800-FLOWERS.COM, Inc. Gift Shop also includes gourmet gifts, such as popcorn and specialty treats from The Popcorn Factory; cookies and baked gifts from Cheryl&Co.; chocolates and confections from Fannie May Confections Brands; gourmet foods from Greatfood.com; wine gifts from Ambrosia; gift baskets from 1-800-BASKETS.COM and DesignPac Gifts, as well as Home Decor and Children's Gifts from Plow & Hearth, Wind & Weather, HearthSong and Magic Cabin. On July 21, 2008, the Company acquired selected assets of Napco Marketing Corp.
7.2 Top Management
The chairman is James F. Mccann, the chief executive officer is Christopher G. Mccann and the chief financial officer is William E. Shea.
7.3 Issued Capital
Based on 36,037,000 issued shares the market capitalisation is $US610.8 million.
Contact: +1 516 237-6000
Physical Address: One Old Country Road, Carle Place, NY,11514
State/Province/Country: NY, United States
Country of Incorporation: United States
Industry [NAICS]: 453110
Economic Sector: Technology
Business Sector: Software & IT Services
Industry Group: Software & IT Services
Industry: Internet Services
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