HNI (NYSE:HNI) Hits New 1-Year Low - Here's What Happened

Key Points

• 52-week low: HNI shares fell to a new 52-week low of $32.16 (last $32.01), down about 2% on the session and trading well below its 50- and 200-day moving averages near $43, with a market cap of roughly $2.27 billion.
• Mixed quarterly results: The company reported $0.83 EPS, missing consensus by $0.08, while revenue of $888.4M beat estimates and rose 38.3% year-over-year; analysts remain split but the average rating is a "Moderate Buy" with a $75 price target.
• Dividend yield and payout risk: HNI pays a $0.34 quarterly dividend (annualized yield ~4.3%) but has a high payout ratio of 108.8%, which may raise questions about dividend sustainability.

Shares of HNI Corporation (NYSE:HNI - Get Free Report) reached a new 52-week low during trading on Monday . The stock traded as low as $32.16 and last traded at $32.0070, with a volume of 814346 shares changing hands. The stock had previously closed at $32.47.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on HNI shares. Benchmark reissued a "buy" rating on shares of HNI in a research note on Friday, January 16th. Weiss Ratings downgraded shares of HNI from a "buy (b-)" rating to a "hold (c)" rating in a research note on Thursday, March 5th. Finally, Wall Street Zen cut shares of HNI from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $75.00.

HNI Trading Down 2.0%

The stock has a market capitalization of $2.27 billion, a price-to-earnings ratio of 25.91, a P/E/G ratio of 0.39 and a beta of 1.02. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.82 and a current ratio of 1.24. The firm has a fifty day moving average of $43.47 and a 200-day moving average of $43.22.

HNI (NYSE:HNI - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The business services provider reported $0.83 EPS for the quarter, missing analysts' consensus estimates of $0.91 by ($0.08). HNI had a return on equity of 15.80% and a net margin of 1.91%.The company had revenue of $888.40 million for the quarter, compared to analyst estimates of $693.78 million. During the same quarter in the prior year, the firm earned $0.87 EPS. The company's revenue for the quarter was up 38.3% compared to the same quarter last year. As a group, equities analysts predict that HNI Corporation will post 3.6 earnings per share for the current fiscal year.

HNI Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 11th. Shareholders of record on Monday, March 2nd were issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date was Monday, March 2nd. HNI's dividend payout ratio is currently 108.80%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada increased its stake in HNI by 20.5% during the 1st quarter. Royal Bank of Canada now owns 8,642 shares of the business services provider's stock worth $383,000 after buying an additional 1,472 shares during the period. AQR Capital Management LLC increased its position in shares of HNI by 6.3% during the first quarter. AQR Capital Management LLC now owns 13,527 shares of the business services provider's stock worth $600,000 after acquiring an additional 802 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of HNI by 4.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,239 shares of the business services provider's stock worth $1,252,000 after acquiring an additional 1,290 shares in the last quarter. Millennium Management LLC purchased a new position in HNI in the first quarter valued at about $10,666,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in HNI by 7.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 142,290 shares of the business services provider's stock valued at $6,311,000 after purchasing an additional 9,730 shares during the last quarter. 75.26% of the stock is currently owned by hedge funds and other institutional investors.

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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