Five Below (FIVE) Lower as KeyBanc Says Fidget Spinner Fad May Have Peaked

May 31, 2017 9:42 AM EDT
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Price: $193.47 +0.42%

Rating Summary:
    27 Buy, 8 Hold, 0 Sell

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Today's Overall Ratings:
    Up: 20 | Down: 26 | New: 20
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Five Below (NASDAQ: FIVE) is lower off the open (-2%) as KeyBanc analyst Bradley Thomas said Spinners and fidget devices may have peaked.

Thomas said they observed two datapoints that indicate demand may have hit an inflection point, and may have peaked or plateaued:

  1. First, the products are not leading the top positions in Amazon like they were several weeks ago (today, 16 of the top 20 toys; two weeks ago, they were all 20 of the top 20 most popular toys on Amazon).
  2. Second, Google Trends data suggest searches for Spinners have declined in each of the past two weeks (when looking at the weekend data, when search interest is at its strongest).

"While this does not change our view that Spinners are positioned to be a near-term positive for fundamentals at FIVE, we believe near-term investor sentiment for FIVE could become more bearish if the Spinner fad is ending," the analyst said.

The firm maintained an Overweight rating and price target of $58 on FIVE.

For an analyst ratings summary and ratings history on Five Below click here. For more ratings news on Five Below click here.

Shares of Five Below closed at $52.22 yesterday.

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