Y Intercept Hong Kong Ltd has acquired a new stake in Ethan Allen Interiors Inc. (NYSE: ETD), investing approximately $1.41 million during the second quarter of 2023. This investment, which involves the purchase of 50,676 shares, was disclosed in the firm’s recent filing with the Securities and Exchange Commission (SEC). Following this acquisition, Y Intercept Hong Kong Ltd holds about 0.20% of Ethan Allen Interiors.
A number of other institutional investors have also altered their positions in Ethan Allen Interiors. Gilman Hill Asset Management LLC purchased shares valued at $6.20 million in the same quarter. Additionally, Jacobs Levy Equity Management Inc. entered the market with an investment of approximately $3.25 million in the first quarter. Jane Street Group LLC increased its stake by 31.2%, now owning 371,979 shares worth $10.30 million after an acquisition of 88,383 shares. Trexquant Investment LP significantly raised its holdings by 345.6%, now possessing 93,332 shares valued at $2.59 million. Furthermore, Janney Montgomery Scott LLC made a new investment during the second quarter estimated at $2.01 million. Overall, institutional investors account for 83.80% of the company’s stock.
Analysts Adjust Ratings and Price Targets
Recent assessments from analysts have brought mixed signals for Ethan Allen Interiors. Zacks Research downgraded the stock from a “hold” rating to a “strong sell” rating in a note issued on October 26. Meanwhile, Weiss Ratings maintained a “hold (c)” rating, reflecting a cautious stance. Telsey Advisory Group reduced its price target from $30.00 to $28.00, assigning a “market perform” rating in its latest analysis. Currently, three analysts recommend holding onto the stock, while one suggests selling, resulting in an average rating of “reduce” with a consensus target price of $28.00, according to MarketBeat.
Ethan Allen Interiors opened at $24.22 on October 30, 2023, reflecting a 1.2% decrease. The company currently has a market capitalization of $616.17 million, a price-to-earnings (P/E) ratio of 13.09, and a beta of 1.12. Over the past year, shares have fluctuated between a low of $24.07 and a high of $32.61. The company’s 50-day moving average stands at $28.54, while the 200-day moving average is at $28.28.
Earnings Performance and Dividend Announcement
Ethan Allen Interiors recently released its earnings report for the last quarter. The company reported earnings of $0.43 per share, slightly missing the analyst consensus estimate of $0.44. Revenue for the quarter totaled $146.98 million, falling short of expectations of $149.15 million. The firm noted a 4.8% year-over-year decline in revenue, with earnings per share dropping from $0.58 in the previous year. Analysts predict that Ethan Allen Interiors will achieve an earnings per share of $2.32 for the current fiscal year.
In addition to earnings, the company has declared a quarterly dividend of $0.39 per share, scheduled for payment on November 26, 2023. Shareholders on record as of November 12 will be eligible for this dividend, which translates to an annualized dividend of $1.56 and a yield of 6.4%. The ex-dividend date is also set for November 12. Currently, Ethan Allen Interiors has a payout ratio of 84.32%.
In related news, CEO M Farooq Kathwari sold 15,000 shares of the company’s stock on October 15, 2023, at an average price of $28.01, amounting to a total transaction value of $420,150. Following this sale, Kathwari retains ownership of 1,583,652 shares, valued at approximately $44.36 million. This transaction represents a 0.94% decrease in his stake in the company. Over the past quarter, insiders have sold a total of 31,400 shares worth $900,866, with insiders currently holding 9.92% of the stock.
Ethan Allen Interiors operates as a comprehensive interior design firm, manufacturing and retailing home furnishings across the United States, Mexico, Honduras, and Canada. The company divides its operations into wholesale and retail segments, providing a diverse range of products, including case goods, upholstery, and home accent items.
