HNI (NYSE:HNI) Shares Gap Down - What's Next?

Key Points

• HNI Corporation shares gapped down significantly before the opening bell on Monday, starting at $40.40 after a previous close of $50.62, and ended trading at $44.41.
• Analysts have offered mixed ratings, with Longbow Research and Wall Street Zen issuing a "buy" and "strong-buy" rating respectively, while Susquehanna provided a more conservative "neutral" rating.
• HNI recently reported $1.11 earnings per share for the last quarter, exceeding estimates, with revenue also surpassing expectations at $667.10 million.

HNI Corporation (NYSE:HNI - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $50.62, but opened at $40.40. HNI shares last traded at $44.41, with a volume of 388,226 shares trading hands.

Analysts Set New Price Targets

A number of research firms have recently issued reports on HNI. Susquehanna started coverage on shares of HNI in a research note on Friday, May 16th. They set a "neutral" rating and a $80.00 price objective on the stock. Longbow Research started coverage on HNI in a report on Friday, May 16th. They set a "buy" rating and a $70.00 target price on the stock. Finally, Wall Street Zen upgraded HNI from a "buy" rating to a "strong-buy" rating in a research report on Tuesday, May 13th.

HNI Stock Performance

The company has a market cap of $1.99 billion, a PE ratio of 14.13, a P/E/G ratio of 1.03 and a beta of 0.95. The stock's 50-day simple moving average is $49.20 and its 200 day simple moving average is $46.84. The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.93 and a current ratio of 1.46.

HNI (NYSE:HNI - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The business services provider reported $1.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.25. The firm had revenue of $667.10 million for the quarter, compared to analyst estimates of $646.49 million. HNI had a return on equity of 20.08% and a net margin of 5.73%. HNI's quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.79 earnings per share. As a group, equities analysts anticipate that HNI Corporation will post 3.6 EPS for the current year.

HNI Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 11th. Shareholders of record on Friday, May 23rd were given a $0.34 dividend. The ex-dividend date was Friday, May 23rd. This represents a $1.36 dividend on an annualized basis and a dividend yield of 3.1%. This is an increase from HNI's previous quarterly dividend of $0.33. HNI's dividend payout ratio is 44.16%.

Insider Buying and Selling at HNI

In other HNI news, Director Miguel M. Calado sold 1,743 shares of the company's stock in a transaction dated Thursday, July 24th. The stock was sold at an average price of $53.00, for a total value of $92,379.00. Following the sale, the director owned 30,085 shares in the company, valued at approximately $1,594,505. The trade was a 5.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Jason Dean Hagedorn sold 1,440 shares of HNI stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $47.07, for a total value of $67,780.80. Following the completion of the transaction, the insider directly owned 36,711 shares in the company, valued at approximately $1,727,986.77. This represents a 3.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 5,383 shares of company stock worth $270,818 in the last ninety days. 3.37% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On HNI

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Federated Hermes Inc. bought a new stake in HNI in the 1st quarter valued at about $26,000. Caitong International Asset Management Co. Ltd grew its position in HNI by 88.5% during the first quarter. Caitong International Asset Management Co. Ltd now owns 705 shares of the business services provider's stock worth $31,000 after buying an additional 331 shares in the last quarter. GAMMA Investing LLC increased its position in shares of HNI by 44.1% in the second quarter. GAMMA Investing LLC now owns 774 shares of the business services provider's stock worth $38,000 after purchasing an additional 237 shares during the last quarter. Sterling Capital Management LLC raised its position in shares of HNI by 649.1% during the 4th quarter. Sterling Capital Management LLC now owns 809 shares of the business services provider's stock valued at $41,000 after buying an additional 701 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new stake in HNI during the fourth quarter worth about $55,000. Institutional investors and hedge funds own 75.26% of the company's stock.

About HNI

HNI Corporation, together with its subsidiaries, engages in the manufacture, sale, and marketing of workplace furnishings and residential building products primarily in the United States and Canada. The company operates through two segments, Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment offers a range of commercial and home office furniture, including panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, and ancillary and hospitality products, as well as social collaborative items under the HON, Allsteel, Beyond, Gunlocke, HBF, HBF Textiles, HNI India, Kimball, National, Etc., Interwoven, David Edward, Kimball Hospitality, and D'style brands.