HNI Corporation (NYSE:HNI) Shareholders to Receive $0.35 Quarterly Dividend

Key Points

• HNI declared a quarterly dividend of $0.35 per share, payable December 1 to shareholders of record November 23. That equates to $1.40 annually and a 2.9% yield.
• The dividend appears well covered: HNI’s current payout ratio is 34.9%, and analysts expect next year’s earnings to cover the annual dividend at a 29.7% payout ratio.
• HNI reported quarterly EPS of $1.62, beating the $1.39 analyst consensus; revenue rose 132.9% year over year to $1.59 billion, slightly below estimates.

HNI Corporation (NYSE:HNI - Get Free Report) declared a quarterly dividend on Wednesday, November 11th. Investors of record on Monday, November 23rd will be paid a dividend of $0.35 per share by the business services provider on Tuesday, December 1st. This represents a $1.40 annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, November 23rd.

HNI has a payout ratio of 34.9% indicating that its dividend is sufficiently covered by earnings. Research analysts expect HNI to earn $4.71 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 29.7%.

HNI Stock Performance

HNI stock opened at $49.01 on Thursday. HNI has a 1-year low of $28.93 and a 1-year high of $52.79. The company's 50-day moving average is $47.33 and its 200 day moving average is $42.06. The firm has a market capitalization of $3.54 billion, a P/E ratio of 111.39, a price-to-earnings-growth ratio of 0.76 and a beta of 0.94. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.33 and a quick ratio of 0.88.

HNI (NYSE:HNI - Get Free Report) last issued its quarterly earnings results on Tuesday, November 3rd. The business services provider reported $1.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.39 by $0.23. The firm had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.60 billion. HNI had a return on equity of 15.39% and a net margin of 1.00%. HNI's quarterly revenue was up 132.9% compared to the same quarter last year. During the same period last year, the company earned $0.88 EPS. Research analysts forecast that HNI will post 4.35 EPS for the current year.

Insider Buying and Selling

In related news, CEO Jeffrey Lorenger sold 39,576 shares of the business's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $50.09, for a total value of $1,982,361.84. Following the sale, the chief executive officer directly owned 148,490 shares in the company, valued at approximately $7,437,864.10. The trade was a 21.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 49,288 shares of company stock valued at $2,468,419 in the last 90 days. Corporate insiders own 2.15% of the company's stock.

Institutional Trading of HNI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HNI. Private Advisor Group LLC grew its stake in shares of HNI by 10.5% in the third quarter. Private Advisor Group LLC now owns 8,611 shares of the business services provider's stock worth $390,000 after acquiring an additional 815 shares in the last quarter. Boston Partners grew its position in shares of HNI by 11.1% during the third quarter. Boston Partners now owns 96,683 shares of the business services provider's stock worth $4,382,000 after buying an additional 9,663 shares in the last quarter. Public Sector Pension Investment Board increased its stake in shares of HNI by 13.4% during the third quarter. Public Sector Pension Investment Board now owns 272,032 shares of the business services provider's stock worth $12,979,000 after buying an additional 32,122 shares during the period. Global Retirement Partners LLC raised its holdings in HNI by 411.6% in the third quarter. Global Retirement Partners LLC now owns 1,990 shares of the business services provider's stock valued at $90,000 after acquiring an additional 1,601 shares in the last quarter. Finally, Hantz Financial Services Inc. raised its holdings in HNI by 1,016.9% in the third quarter. Hantz Financial Services Inc. now owns 18,026 shares of the business services provider's stock valued at $817,000 after acquiring an additional 16,412 shares in the last quarter. Hedge funds and other institutional investors own 75.26% of the company's stock.

HNI Company Profile

HNI Corporation is a workplace furnishings and residential building products company. Its workplace furnishings business designs and manufactures office furniture and related products for businesses, government organizations, educational institutions and other customers. Its portfolio includes brands such as HON, Allsteel and Gunlocke, with products ranging from office seating and desks to workstations and storage. HNI also makes fireplaces, stoves and related hearth products through brands including Heat & Glo, Heatilator, Majestic, Harman and Quadra-Fire.

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