HNI (NYSE:HNI) Stock Price Down 7.9% on Disappointing Earnings

HNI Corporation (NYSE:HNI)’s stock price dropped 7.9% on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $43.91 and last traded at $44.73. Approximately 179,201 shares changed hands during trading, a decline of 65% from the average daily volume of 505,373 shares. The stock had previously closed at $48.57.

The business services provider reported $0.83 earnings per share for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.08). HNI had a net margin of 5.46% and a return on equity of 20.33%. The firm’s revenue was up 38.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.87 EPS.

HNI Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Monday, March 2nd will be issued a $0.34 dividend. The ex-dividend date is Monday, March 2nd. This represents a $1.36 annualized dividend and a dividend yield of 3.0%. HNI’s dividend payout ratio (DPR) is 45.64%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Weiss Ratings raised HNI from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, February 3rd. Benchmark restated a “buy” rating on shares of HNI in a report on Friday, January 16th. Finally, Wall Street Zen cut HNI from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 1st. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $75.00.

Institutional Investors Weigh In On HNI

Several hedge funds have recently bought and sold shares of HNI. Triumph Capital Management purchased a new position in HNI during the 3rd quarter valued at about $28,000. GAMMA Investing LLC grew its position in HNI by 59.9% during the fourth quarter. GAMMA Investing LLC now owns 1,223 shares of the business services provider’s stock valued at $51,000 after purchasing an additional 458 shares in the last quarter. Versant Capital Management Inc lifted its position in HNI by 433.7% in the 3rd quarter. Versant Capital Management Inc now owns 1,110 shares of the business services provider’s stock worth $52,000 after buying an additional 902 shares in the last quarter. Nations Financial Group Inc. IA ADV acquired a new stake in shares of HNI during the 3rd quarter valued at $203,000. Finally, Equitable Trust Co. raised its holdings in shares of HNI by 22.5% during the third quarter. Equitable Trust Co. now owns 7,520 shares of the business services provider’s stock worth $352,000 after acquiring an additional 1,380 shares in the last quarter. 75.26% of the stock is owned by hedge funds and other institutional investors.

HNI Trading Down 8.0%

The business has a 50-day moving average of $46.51 and a 200-day moving average of $44.47. The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 0.40. The stock has a market cap of $2.05 billion, a price-to-earnings ratio of 14.81, a PEG ratio of 0.60 and a beta of 0.94.

About HNI

HNI Corporation, founded in 1944 as the Heating & Novelty Company and headquartered in Muscatine, Iowa, is a leading manufacturer of office furniture and hearth products. Over its history, the company has evolved from producing gas heaters into two primary business segments: Office Furniture and Hearth & Home. HNI’s Office Furniture division operates under well-known brands such as The HON Company, Allsteel, Gunlocke and Kimball, offering a comprehensive portfolio of workstations, seating, tables, storage solutions and acoustic products tailored for corporate, education, healthcare and government markets.

In its Hearth & Home segment, HNI designs, manufactures and distributes fireplaces, stoves, fireplace inserts, logs and related accessories.