Pillsbury Lake Capital LLC Acquires New Position in HNI Corporation $HNI

Key Points

• Pillsbury Lake Capital acquired 412,808 HNI shares worth approximately $16.7 million, giving it a 0.57% stake and making HNI its fourth-largest portfolio holding. Institutional investors collectively own 75.26% of the company.
• HNI exceeded quarterly earnings expectations, reporting $1.27 in EPS versus the $1.04 consensus estimate, while revenue rose 120.7% year over year to $1.47 billion. The company guided for fiscal 2026 EPS of $4.15–$4.33.
• HNI declared a quarterly dividend of $0.35 per share, equivalent to a 2.8% annual yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $65, above the reported $49.72 share price.

Pillsbury Lake Capital LLC bought a new position in HNI Corporation (NYSE:HNI - Free Report) in the second quarter, according to its most recent filing with the SEC. The firm bought 412,808 shares of the business services provider's stock, valued at approximately $16,681,571,000. HNI makes up 4.6% of Pillsbury Lake Capital LLC's investment portfolio, making the stock its 4th largest position. Pillsbury Lake Capital LLC owned 0.57% of HNI as of its most recent filing with the SEC.

A number of other hedge funds have also bought and sold shares of the stock. BlackRock Inc. purchased a new position in shares of HNI in the second quarter worth $431,744,000. Bank of New York Mellon Corp purchased a new stake in shares of HNI during the second quarter valued at $37,988,000. Front Street Capital Management Inc. acquired a new position in shares of HNI in the 2nd quarter valued at $23,462,000. Bank of America Corp DE acquired a new position in shares of HNI in the 2nd quarter valued at $15,724,000. Finally, Medina Value Partners LLC purchased a new position in HNI in the 2nd quarter worth $10,242,319,000. Institutional investors and hedge funds own 75.26% of the company's stock.

HNI Stock Down 0.4%

NYSE:HNI opened at $49.72 on Thursday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.36 and a quick ratio of 0.88. The company's fifty day moving average price is $43.28 and its 200-day moving average price is $39.45. HNI Corporation has a 1-year low of $28.93 and a 1-year high of $52.79. The firm has a market capitalization of $3.59 billion, a P/E ratio of 552.51, a PEG ratio of 0.59 and a beta of 0.91.

HNI (NYSE:HNI - Get Free Report) last posted its earnings results on Thursday, July 30th. The business services provider reported $1.27 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.04 by $0.23. HNI had a net margin of 0.10% and a return on equity of 13.66%. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.48 billion. During the same period in the previous year, the firm posted $1.11 earnings per share. The firm's quarterly revenue was up 120.7% on a year-over-year basis. HNI has set its FY 2026 guidance at 4.150-4.330 EPS and its Q3 2026 guidance at 1.160-1.190 EPS. As a group, equities research analysts anticipate that HNI Corporation will post 4.24 EPS for the current year.

HNI Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 28th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Friday, August 28th. HNI's payout ratio is 1,555.56%.

Insider Activity at HNI

In other news, CEO Jeffrey D. Lorenger sold 700 shares of the company's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $50.01, for a total value of $35,007.00. Following the sale, the chief executive officer owned 148,490 shares in the company, valued at $7,425,984.90. This represents a 0.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.15% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of brokerages have commented on HNI. Benchmark reaffirmed a "buy" rating on shares of HNI in a research report on Wednesday, July 15th. Wells Fargo & Company set a $65.00 price objective on HNI in a research note on Wednesday, July 15th. Finally, Weiss Ratings raised HNI from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, July 24th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $65.00.

About HNI

HNI Corporation, founded in 1944 as the Heating & Novelty Company and headquartered in Muscatine, Iowa, is a leading manufacturer of office furniture and hearth products. Over its history, the company has evolved from producing gas heaters into two primary business segments: Office Furniture and Hearth & Home. HNI's Office Furniture division operates under well-known brands such as The HON Company, Allsteel, Gunlocke and Kimball, offering a comprehensive portfolio of workstations, seating, tables, storage solutions and acoustic products tailored for corporate, education, healthcare and government markets.

In its Hearth & Home segment, HNI designs, manufactures and distributes fireplaces, stoves, fireplace inserts, logs and related accessories.

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