Bank of America Corp DE Makes New $5.45 Million Investment in Ethan Allen Interiors Inc. $ETD

Key Points

• Bank of America purchased 243,754 shares of Ethan Allen Interiors in the second quarter, worth approximately $5.45 million and representing a 0.96% stake. Institutional investors collectively own 83.8% of the company.
• Analyst sentiment remains cautious: Ethan Allen has an average “Reduce” rating and a $22 price target, with recent actions including a target-price cut by Telsey Advisory Group and a “strong sell” downgrade from Zacks Research.
• The company exceeded quarterly EPS expectations with $0.36 versus $0.34 forecast, but revenue fell 8.5% year over year to $146.75 million. Ethan Allen also paid a special $3.00-per-share dividend, while its CEO sold shares under a pre-arranged trading plan.

Bank of America Corp DE bought a new position in Ethan Allen Interiors Inc. (NYSE:ETD - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 243,754 shares of the company's stock, valued at approximately $5,445,000. Bank of America Corp DE owned 0.96% of Ethan Allen Interiors at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Freestone Grove Partners LP acquired a new stake in shares of Ethan Allen Interiors in the 2nd quarter worth about $381,000. Jupiter Topco LLC acquired a new position in shares of Ethan Allen Interiors during the second quarter worth approximately $216,000. PDT Partners LLC bought a new position in Ethan Allen Interiors in the 2nd quarter worth approximately $2,063,000. Legal & General Group Plc bought a new position in Ethan Allen Interiors in the 2nd quarter worth approximately $327,000. Finally, Sanctuary Advisors LLC acquired a new stake in Ethan Allen Interiors in the 2nd quarter valued at approximately $478,000. 83.80% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ETD. Telsey Advisory Group cut their target price on Ethan Allen Interiors from $24.00 to $22.00 and set a "market perform" rating on the stock in a research note on Thursday, July 30th. Weiss Ratings raised Ethan Allen Interiors from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, September 2nd. Finally, Zacks Research lowered Ethan Allen Interiors from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $22.00.

Ethan Allen Interiors Stock Performance

Shares of ETD stock opened at $21.23 on Tuesday. Ethan Allen Interiors Inc. has a 1 year low of $18.28 and a 1 year high of $29.61. The stock has a market cap of $535.12 million, a PE ratio of 13.61 and a beta of 1.03. The business's fifty day moving average is $22.69 and its 200-day moving average is $21.93.

Ethan Allen Interiors (NYSE:ETD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.02. Ethan Allen Interiors had a return on equity of 7.88% and a net margin of 6.88%.The company had revenue of $146.75 million for the quarter, compared to the consensus estimate of $148.70 million. During the same quarter in the previous year, the business earned $0.49 EPS. The company's quarterly revenue was down 8.5% compared to the same quarter last year. Equities research analysts predict that Ethan Allen Interiors Inc. will post 1.3 earnings per share for the current year.

Ethan Allen Interiors Announces Dividend

The firm also recently announced a special dividend, which was paid on Thursday, September 17th. Investors of record on Thursday, September 3rd were paid a dividend of $3.00 per share. The ex-dividend date of this dividend was Thursday, September 3rd. Ethan Allen Interiors's dividend payout ratio is currently 100.00%.

Insiders Place Their Bets

In related news, CEO M Kathwari sold 1,063 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $25.04, for a total transaction of $26,617.52. Following the completion of the sale, the chief executive officer directly owned 22,077 shares in the company, valued at approximately $552,808.08. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at 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.

Ethan Allen Interiors Company Profile

Ethan Allen Interiors Inc NYSE: ETD is an American home furnishings company that designs, manufactures and sells furniture and related products. Its offerings include upholstered furniture, case goods, dining and bedroom furniture, mattresses, rugs, lighting, window treatments, wall decor and other home accessories.

The company markets its products through a network of Ethan Allen Design Centers in the United States and Canada, as well as through its e-commerce platform and other distribution channels.

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