HNI (NYSE:HNI) Stock Crosses Above 50-Day Moving Average - Here's Why

Key Points

• HNI shares rose 2.1% and crossed above their 50-day moving average of $47.34, reaching as high as $48.22. The stock’s 200-day moving average is $41.95.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and a $65 target price. Wells Fargo set the $65 target, while Benchmark and Wall Street Zen issued or upgraded the stock to “Buy.”
• HNI exceeded quarterly EPS expectations, reporting $1.27 versus the $1.04 consensus, while revenue increased 120.7% year over year to $1.47 billion. The company also pays a $0.35 quarterly dividend, equivalent to a 2.9% annualized yield.

Shares of HNI Corporation (NYSE:HNI - Get Free Report) crossed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $47.34 and traded as high as $48.22. HNI shares last traded at $47.8640, with a volume of 784,189 shares traded.

Analyst Ratings Changes

Several research firms have weighed in on HNI. Wells Fargo & Company set a $65.00 target price on shares of HNI in a report on Wednesday, July 15th. Weiss Ratings restated a "hold (c-)" rating on shares of HNI in a report on Thursday, October 22nd. Benchmark restated a "buy" rating on shares of HNI in a report on Wednesday, July 15th. Finally, Wall Street Zen raised shares of HNI from a "hold" rating to a "buy" rating in a research report on Saturday, September 12th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $65.00.

HNI Stock Up 2.1%

The stock has a market capitalization of $3.45 billion, a price-to-earnings ratio of 531.88, a P/E/G ratio of 0.75 and a beta of 0.93. The business has a 50-day moving average of $47.34 and a 200-day moving average of $41.95. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.88 and a current ratio of 1.36.

HNI (NYSE:HNI - Get Free Report) last announced 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 return on equity of 13.66% and a net margin of 0.10%. The company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same quarter in the previous year, the company earned $1.11 earnings per share. The firm's quarterly revenue was up 120.7% compared to the same quarter last year. On average, sell-side analysts expect that HNI Corporation will post 4.19 EPS for the current year.

HNI Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 11th. Stockholders of record on Friday, August 28th were given a dividend of $0.35 per share. The ex-dividend date of this dividend was Friday, August 28th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.9%. HNI's payout ratio is currently 1,555.56%.

Insider Activity at HNI

In related news, CEO Jeffrey Lorenger sold 45,850 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $47.55, for a total transaction of $2,180,167.50. Following the sale, the chief executive officer directly owned 148,490 shares in the company, valued at approximately $7,060,699.50. This represents a 23.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 95,138 shares of company stock worth $4,648,587 over the last three months. Insiders own 2.15% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Burnham & Co LLC acquired a new position in HNI during the 2nd quarter worth approximately $4,024,000. Bank of America Corp DE purchased a new stake in shares of HNI in the 2nd quarter valued at approximately $15,724,000. Jupiter Topco LLC purchased a new stake in shares of HNI in the 2nd quarter valued at approximately $1,289,000. Medina Value Partners LLC acquired a new stake in shares of HNI in the 2nd quarter valued at $10,242,319. Finally, Deutsche Bank AG acquired a new stake in shares of HNI in the 2nd quarter valued at $2,994,000. Hedge funds and other institutional investors own 75.26% of the company's stock.

HNI Company Profile

HNI Corporation NYSE: HNI, headquartered in Muscatine, Iowa, is a workplace and residential building products company. Its businesses serve organizations, businesses, education and government customers, as well as residential consumers through office furnishings and hearth products.

HNI's workplace furnishings portfolio includes desks, tables, seating, storage, collaborative products and related workplace solutions. Its brands include HON, Allsteel, HBF and Gunlocke, among others. The company sells products through dealers, retailers, e-commerce channels and other distribution partners, primarily serving customers in North America.

Through its hearth products business, HNI manufactures fireplaces, inserts, stoves and related products fueled by gas, wood and pellets.

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