HNI (NYSE:HNI) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• HNI shares rose above their 200-day moving average, reaching $49.44 and last trading near $48.85, compared with a 200-day average of $39.51.
• Analysts maintain a cautiously positive outlook, with a consensus “Moderate Buy” rating and a $65 price target. HNI also exceeded quarterly EPS estimates, reporting $1.27 versus the expected $1.04, while revenue increased 120.7% year over year.
• HNI increased its quarterly dividend to $0.35, or $1.40 annually, representing an approximately 2.9% yield; institutional investors own 75.26% of the company, while CEO Jeffrey Lorenger sold shares under a pre-arranged trading plan.

HNI Corporation (NYSE:HNI - Get Free Report) shares crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $39.51 and traded as high as $49.44. HNI shares last traded at $48.8540, with a volume of 233,319 shares trading hands.

Analyst Upgrades and Downgrades

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

HNI Stock Down 1.0%

The company's fifty day simple moving average is $40.69 and its 200 day simple moving average is $39.51. The company has a quick ratio of 0.88, a current ratio of 1.36 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $3.53 billion, a PE ratio of 542.88, a price-to-earnings-growth ratio of 0.58 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 for the quarter, topping analysts' consensus estimates of $1.04 by $0.23. HNI had a return on equity of 13.66% and a net margin of 0.10%.The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same quarter in the prior year, the business earned $1.11 EPS. The business's revenue for the quarter 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. Analysts anticipate that HNI Corporation will post 4.24 earnings per share for the current fiscal year.

HNI Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 29th were issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 2.9%. This is a positive change from HNI's previous quarterly dividend of $0.34. The ex-dividend date was Friday, May 29th. HNI's dividend payout ratio is currently 1,555.56%.

Insider Buying and Selling

In other HNI news, CEO Jeffrey D. Lorenger sold 45,850 shares of the firm's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $47.55, for a total transaction of $2,180,167.50. Following the completion of the transaction, the chief executive officer owned 148,490 shares of the company's stock, valued at approximately $7,060,699.50. This trade represents a 23.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.15% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Legal & General Group Plc purchased a new position in HNI during the 2nd quarter valued at about $6,407,000. Bank of New York Mellon Corp purchased a new stake in HNI in the second quarter worth about $37,988,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in HNI in the second quarter worth about $2,525,000. Deutsche Bank AG bought a new position in shares of HNI during the second quarter valued at approximately $2,994,000. Finally, BlackRock Inc. bought a new position in shares of HNI during the second quarter valued at approximately $431,744,000. 75.26% of the stock is currently owned by 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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