Ethan Allen Interiors (NYSE:ETD) Shares Gap Down - What's Next?

Key Points

• Ethan Allen Interiors shares fell sharply, opening at $22.91 after closing at $23.67 and later trading around $22.40.
• Analyst sentiment is bearish: the consensus rating is “Sell”, with a $22.00 price target after Telsey lowered its target and Zacks downgraded the stock to “strong sell.”
• The company exceeded quarterly EPS estimates, reporting $0.36 versus $0.34 expected, but revenue declined 8.5% year over year to $146.75 million; it also announced a special $0.25 dividend.

Ethan Allen Interiors Inc. (NYSE:ETD - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $23.67, but opened at $22.91. Ethan Allen Interiors shares last traded at $22.40, with a volume of 69,549 shares trading hands.

Analyst Ratings Changes

A number of research firms have issued reports on ETD. Telsey Advisory Group cut their price objective on shares of Ethan Allen Interiors from $24.00 to $22.00 and set a "market perform" rating on the stock in a report on Thursday, July 30th. Weiss Ratings reissued a "sell (d+)" rating on shares of Ethan Allen Interiors in a research report on Friday, July 31st. Finally, Zacks Research downgraded shares of Ethan Allen Interiors from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 30th. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Sell" and a consensus price target of $22.00.

Ethan Allen Interiors Stock Performance

The stock has a market cap of $571.52 million, a P/E ratio of 14.40 and a beta of 1.02. The business has a 50 day simple moving average of $22.24 and a 200-day simple moving average of $22.18.

Ethan Allen Interiors (NYSE:ETD - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.02. The company had revenue of $146.75 million for the quarter, compared to analysts' expectations of $148.70 million. Ethan Allen Interiors had a return on equity of 7.88% and a net margin of 6.88%.The business's revenue for the quarter was down 8.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.49 EPS. On average, sell-side analysts predict that Ethan Allen Interiors Inc. will post 1.35 earnings per share for the current fiscal year.

Ethan Allen Interiors Dividend Announcement

The business also recently announced a special dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th will be paid a $0.25 dividend. The ex-dividend date is Wednesday, August 12th. Ethan Allen Interiors's payout ratio is presently 100.00%.

Institutional Investors Weigh In On Ethan Allen Interiors

Several large investors have recently modified their holdings of ETD. Allworth Financial LP purchased a new position in Ethan Allen Interiors in the second quarter valued at approximately $30,000. Tower Research Capital LLC TRC grew its holdings in Ethan Allen Interiors by 365.5% during the second quarter. Tower Research Capital LLC TRC now owns 3,054 shares of the company's stock valued at $85,000 after purchasing an additional 2,398 shares during the period. PNC Financial Services Group Inc. increased its position in Ethan Allen Interiors by 132.1% in the first quarter. PNC Financial Services Group Inc. now owns 3,899 shares of the company's stock worth $87,000 after buying an additional 2,219 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC purchased a new stake in Ethan Allen Interiors in the first quarter worth $88,000. Finally, Dunhill Financial LLC bought a new stake in shares of Ethan Allen Interiors in the second quarter valued at $92,000. Hedge funds and other institutional investors own 83.80% of the company's stock.

Ethan Allen Interiors Company Profile

Ethan Allen Interiors Inc NYSE: ETD is a vertically integrated manufacturer and retailer of home furnishings, offering a broad range of furniture, upholstery, case goods and decorative accessories. The company designs and produces the majority of its products in its own North American manufacturing facilities, maintaining close control over quality, craftsmanship and production schedules. Through its network of company-operated and franchised Design Centers and galleries, Ethan Allen delivers a full-service offering that includes on-site interior design consultations and project management.

Founded in 1932 as a small Colonial-Revival furniture maker in northern Vermont, Ethan Allen has grown into a global brand known for its timeless styles and customization options.

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