During the past week, the stock was up 6.60% for Armstrong Flooring Inc., and for the previous month, it was down 5.16%. Its price is 5.76% year-to-date and 45.85% over the past year. The Company had short interest amounting to 0.47 million shares as of Jan 14, 2021. On Feb 11, 2021, short interest fell -5.61% to 25640.0 shares. Days to cover were 2.5. The company had nearly 0.44 million shares short a month ago.
A leader in the global manufacture of flooring, Armstrong Flooring is a celebrated and trusted brand in the flooring industry. By consistently delivering on its mission to create a stronger future for customers through adaptive and innovative solutions, the company has built on its 1500-year legacy of resilience. Operating eight manufacturing facilities safely and responsibly, Armstrong Flooring is headquartered in Lancaster, Pennsylvania.
February 26, 2021, the company announced it has entered into a definitive agreement concluding the sale of its South Gate, California warehouse and manufacturing plant to an Overton Moore Properties affiliate for an amount of $76.7 million cash. An estimated $65 million will be received from Armstrong Flooring in cash, net of the fees and expenses on the deal, plus $10.5 million held in an environmental escrow account. Under customary closing conditions, the transaction is anticipated to close in the first quarter of 2021.
Armstrong Flooring will receive considerable financial and operational benefits from this acquisition. As previously announced, the Company is planning to sell the South Gate property and has taken steps to ensure a smooth transition. The company plans to close the factory in December 2020 in order to increase its tile manufacturing footprint. Two plants located in Illinois and Mississippi are producing products formerly manufactured at South Gate. In addition, the company’s warehouse in Southern California, which has started shipping to customers, has been expanded to 100,000 square feet. South Gate property is being replaced with the new warehouse, which will be sold in the transaction, and leased from the buyer for two months after closing. Investments in modernizing the Company’s five remaining facilities as well as the optimization of the manufacturing network are expected to result in increased efficiencies, lower costs, and higher capacity utilization.
Wall Street analysts are certainly watching closely the recommendations of Armstrong Flooring Inc. According to current analyst evaluations, AFI has a Hold rating. A simple metric referring to the brokerage firm shows a current average recommendation of 2.00 for the stock. The value below 2 indicates a Buy recommendation, whereas those in the range of 2 to 3 suggest a Hold recommendation, and those above 3 advise investors to sell the stock.