HNI (NYSE:HNI) Sets New 1-Year Low - Here's Why

Key Points

• HNI hit a new 52-week low, trading as low as $33.71 (last $33.56) on heavy volume and is trading well below its 50‑day ($44.92) and 200‑day ($43.66) moving averages; market cap is about $1.51 billion.
• Latest quarter showed a mixed report: HNI missed EPS ($0.83 vs. $0.91 expected) but revenue jumped 38.3% to $888.4 million, beating estimates, and analysts forecast about 3.6 EPS for the year.
• Analyst sentiment is mixed (average rating "Moderate Buy" with an average price target of $75), while the company yields 4.1% from a $0.34 quarterly dividend but carries a payout ratio of 108.8%, implying potential sustainability concerns.

HNI Corporation (NYSE:HNI - Get Free Report) shares reached a new 52-week low during mid-day trading on Monday . The company traded as low as $33.71 and last traded at $33.5550, with a volume of 125777 shares trading hands. The stock had previously closed at $34.38.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Wall Street Zen cut HNI from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Benchmark reissued a "buy" rating on shares of HNI in a report on Friday, January 16th. Finally, Weiss Ratings cut shares of HNI from a "buy (b-)" rating to a "hold (c)" rating in a research note on Thursday, March 5th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $75.00.

HNI Stock Down 4.4%

The company has a market capitalization of $1.51 billion, a price-to-earnings ratio of 26.33, a P/E/G ratio of 0.42 and a beta of 0.94. The business has a fifty day simple moving average of $44.92 and a two-hundred day simple moving average of $43.66. The company has a quick ratio of 0.82, a current ratio of 1.24 and a debt-to-equity ratio of 0.70.

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

HNI Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 11th. Stockholders of record on Monday, March 2nd were paid a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 4.1%. The ex-dividend date was Monday, March 2nd. HNI's payout ratio is currently 108.80%.

Institutional Investors Weigh In On HNI

Several large investors have recently made changes to their positions in the company. Triumph Capital Management bought a new position in HNI during the 3rd quarter valued at about $28,000. GAMMA Investing LLC grew its stake in HNI by 59.9% during the fourth quarter. GAMMA Investing LLC now owns 1,223 shares of the business services provider's stock worth $51,000 after buying an additional 458 shares during the last quarter. Versant Capital Management Inc grew its stake in HNI by 433.7% during the third quarter. Versant Capital Management Inc now owns 1,110 shares of the business services provider's stock worth $52,000 after buying an additional 902 shares during the last quarter. Nations Financial Group Inc. IA ADV acquired a new stake in shares of HNI during the third quarter worth approximately $203,000. Finally, Equitable Trust Co. increased its holdings in shares of HNI by 22.5% during the third quarter. Equitable Trust Co. now owns 7,520 shares of the business services provider's stock worth $352,000 after buying an additional 1,380 shares in the last quarter. Institutional investors own 75.26% of the company's stock.

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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