Ethan Allen Interiors (NYSE:ETD) Stock Rating Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ethan Allen Interiors from “Hold” to “Sell.” Despite the cut, the broader analyst consensus remains “Hold,” with a $22 average price target.
• The latest quarter fell short of expectations: EPS was $0.10 versus $0.26 forecast, while revenue of $129.6 million missed the $135.6 million estimate and declined 11.8% year over year.
• ETD shares opened at $17.52, near the stock’s 52-week low of $17.34; the company’s 50-day moving average was $20.61.

Ethan Allen Interiors (NYSE:ETD - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other analysts have also weighed in on ETD. Telsey Advisory Group lowered their price objective on Ethan Allen Interiors from $24.00 to $22.00 and set a "market perform" rating for the company in a report on Thursday, July 30th. Zacks Research raised Ethan Allen Interiors from a "strong sell" rating to a "hold" rating in a report on Monday, October 19th. Finally, Weiss Ratings upgraded Ethan Allen Interiors from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, October 29th. Three equities research analysts have rated the stock with a Hold rating. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $22.00.

Ethan Allen Interiors Price Performance

Shares of ETD stock opened at $17.52 on Friday. The firm has a market cap of $441.53 million, a P/E ratio of 15.53 and a beta of 1.09. Ethan Allen Interiors has a 1-year low of $17.34 and a 1-year high of $25.26. The firm has a fifty day moving average of $20.61 and a two-hundred day moving average of $21.84.

Ethan Allen Interiors (NYSE:ETD - Get Free Report) last issued its earnings results on Monday, November 9th. The company reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.16). Ethan Allen Interiors had a net margin of 5.54% and a return on equity of 6.44%. The company had revenue of $129.60 million during the quarter, compared to analyst estimates of $135.60 million. During the same quarter last year, the company posted $0.43 EPS. The business's revenue for the quarter was down 11.8% compared to the same quarter last year. On average, sell-side analysts expect that Ethan Allen Interiors will post 0.90 EPS for the current year.

Insider Activity

In other news, CEO M Kathwari sold 22,811 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $25.04, for a total value of $571,187.44. Following the transaction, the chief executive officer directly owned 1,465,530 shares in the company, valued at approximately $36,696,871.20. This trade represents a 1.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.92% of the company's stock.

Institutional Investors Weigh In On Ethan Allen Interiors

Institutional investors have recently modified their holdings of the business. Empowered Funds LLC lifted its holdings in Ethan Allen Interiors by 9.2% in the third quarter. Empowered Funds LLC now owns 102,670 shares of the company's stock worth $2,147,000 after acquiring an additional 8,643 shares during the last quarter. Gabelli Funds LLC grew its holdings in shares of Ethan Allen Interiors by 160.0% during the third quarter. Gabelli Funds LLC now owns 65,000 shares of the company's stock valued at $1,359,000 after purchasing an additional 40,000 shares during the last quarter. First Trust Advisors LP bought a new position in shares of Ethan Allen Interiors during the third quarter valued at approximately $2,219,000. Public Sector Pension Investment Board bought a new position in shares of Ethan Allen Interiors during the third quarter valued at approximately $713,000. Finally, Global Retirement Partners LLC raised its position in shares of Ethan Allen Interiors by 363.7% during the 3rd quarter. Global Retirement Partners LLC now owns 1,521 shares of the company's stock worth $32,000 after purchasing an additional 1,193 shares during the period. Institutional investors own 83.80% of the company's stock.

Ethan Allen Interiors Company Profile

Ethan Allen Interiors Inc. is a vertically integrated home furnishings company that designs, manufactures, markets and sells furniture and related home products. Its offerings include upholstered and wood furniture, rugs, lighting, bedding and decorative accessories for living rooms, dining rooms, bedrooms and other spaces. The company also provides interior design services through its design centers, where customers can work with designers on individual purchases or coordinated home furnishings.

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