Francesca’s Holdings Corporation (FRAN) Good Days Over?

Analysts at B. Riley FBR lifted target price for shares of Francesca’s Holdings Corporation (NASDAQ:FRAN) but repeated their Neutral recommendation for the stock in their opinion released on November 27. The price target has been raised from $3.50 to $2.50. B. Riley FBR analysts have downgraded their rating of FRAN stock from Buy to Neutral in a separate flash note to investors on September 12. Analysts at B. Riley FBR, Inc. issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to June 18.

Francesca’s Holdings Corporation (NASDAQ:FRAN) short sellers believe it will decline in price. The most recent short interest data has been released for the December 31st settlement date, which shows a 792,916 share increase in total short interest for FRAN, to 11,070,181, a surge of 7.72% since December 14th. Average daily volume for Francesca’s Holdings Corporation at the December 31st settlement jumped to 2,967,330, as compared to 1,711,309 at the December 14th report. That brought days to cover to 3.730688, a 37.88% decrease from the 6.005499 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 3 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Francesca’s Holdings Corporation (NASDAQ:FRAN)’s prospects. The earliest insider trade took place on 09/25/2018. Redgrave Martyn R gathered a total of 15 thousand shares of company at average share price of $3.93. The total for the purchase was set at $58.95 thousand. After this transaction, the Director account balance stood at 70.35 thousand shares. The stock lost -76.34 percent since that insider purchase. On 09/14/2018, Lawrence Steven Paul, President & CEO, purchased 10 thousand shares at a price per share of $4.11. This added 41.1 thousand shares to the insider’s fortune and the stock saw a -77.37 percent retreat in value since the news became public. This transaction left 209.83 thousand shares in the President & CEO account. On 06/07/2018, Director Emmett Richard J performed a purchase transaction worth $63.7 thousand. This purchase at $6.37 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -85.4 percent decrease since the transaction was reported. The insider now is left with 54.35 thousand shares remaining in the account. Dilts Kelly, who performs the EVP CFO job, bought 2 thousand shares for $11.6 thousand. The acquisition occurred on 01/12/2018 was priced at $5.8 per share. The share price plunged -83.97 percent since the reporting date. Dilts Kelly now left with a stake of 23.78 thousand FRAN stock worth $22.12 thousand after the insider buying.

Francesca’s Holdings Corporation (FRAN) is expected to jump by 88.17 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $1.75-month high price target. This represents a whopping 88.17 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $1.75, which represents a return potential of 88.17 percent when compared to the closing price of the stock of $0.93 on Friday, January 11. The lowest price target for the stock is $1.75 — slightly more than 88.17 percent from FRAN’s current share price.

The shares are currently floating around the first support level of $0.8. Below this, the next support is placed in the zone of $0.67. Till the time, the FRAN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 37.3 on daily chart, which may remain a cause for comfort. If the price breaks below $0.67 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.02 mark may result into a pull-back move towards $1.11 level.

FRAN shares accumulated 0.16 points or 20.78 percent on Friday to $0.93 with a heavy trade volume of 5.196 million shares. After opening the session at $0.76, the shares went as high as $0.98 and as low as $0.76, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $28 million and now has 29.95 million shares outstanding. Francesca’s Holdings Corporation (FRAN) stock has lost -37.68 percent of market value in 21 trading days.

FRAN stock has a trailing 3-year beta of 1.07, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.37 a share in the trailing twelve months. The stock’s value has fallen -3.71 percent year to date (YTD) against a decline of -82.72 percent in 12 month’s time. The company’s shares still trade -88.98 percent away from its 1-year high of $8.48 and 46.68 percent up from 52-week low of $0.64. The average consensus rating on the company is 3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Francesca’s Holdings Corporation (FRAN) are trading at a P/E ratio of 18.85 times earnings reported for the past 12 months. The industry FRAN operates in has an average P/E of 30.76. Its P/E ratio went as low as 10.62X and as high as 20.93 over the 5-year span. Further, it is sporting a 0.06 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2. 39.6 percent is the gross profit margin for Francesca’s Holdings Corporation and operating margin sits at -3.7 percent. Along with this, the net profit margin is -3.6 percent.