Zacks Research Downgrades Ethan Allen Interiors (NYSE:ETD) to Strong Sell

Key Points

• Zacks Research downgraded Ethan Allen Interiors (NYSE:ETD) from a "hold" to a "strong sell", while the stock's consensus rating is "Reduce" with a $27 consensus price target.
• In the latest quarter ETD posted $0.44 EPS (beating estimates) but revenue fell 4.7% year‑over‑year to $149.9M, and the shares trade around $22.21 (market cap ≈ $565M) near their 52‑week low.

Ethan Allen Interiors (NYSE:ETD - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Tuesday,Zacks.com reports.

ETD has been the subject of several other reports. Wall Street Zen upgraded Ethan Allen Interiors from a "sell" rating to a "hold" rating in a report on Sunday, March 1st. Telsey Advisory Group decreased their price target on Ethan Allen Interiors from $28.00 to $27.00 and set a "market perform" rating on the stock in a research note on Thursday, January 29th. Finally, Weiss Ratings upgraded Ethan Allen Interiors from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, February 10th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $27.00.

Ethan Allen Interiors Stock Down 0.6%

Shares of NYSE:ETD opened at $22.21 on Tuesday. The stock has a market cap of $565.24 million, a PE ratio of 12.91 and a beta of 1.19. The company's fifty day moving average is $23.47 and its 200 day moving average is $25.02. Ethan Allen Interiors has a 52 week low of $21.45 and a 52 week high of $31.41.

Ethan Allen Interiors (NYSE:ETD - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.06. The business had revenue of $149.92 million during the quarter, compared to analyst estimates of $152.25 million. Ethan Allen Interiors had a net margin of 7.35% and a return on equity of 9.28%. The company's revenue was down 4.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.59 earnings per share. Sell-side analysts anticipate that Ethan Allen Interiors will post 2.32 EPS for the current year.

Insider Activity

In other news, CEO M Farooq Kathwari sold 2,168 shares of the stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $25.01, for a total value of $54,221.68. Following the completion of the transaction, the chief executive officer owned 1,483,228 shares of the company's stock, valued at approximately $37,095,532.28. This represents a 0.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 9.92% of the company's stock.

Institutional Investors Weigh In On Ethan Allen Interiors

Several hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC raised its holdings in Ethan Allen Interiors by 1.5% in the first quarter. AQR Capital Management LLC now owns 114,494 shares of the company's stock worth $3,171,000 after purchasing an additional 1,655 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Ethan Allen Interiors by 4.1% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,544 shares of the company's stock valued at $375,000 after buying an additional 538 shares during the period. Jane Street Group LLC boosted its holdings in shares of Ethan Allen Interiors by 31.2% during the 1st quarter. Jane Street Group LLC now owns 371,979 shares of the company's stock valued at $10,304,000 after buying an additional 88,383 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Ethan Allen Interiors by 1.2% during the 2nd quarter. Geode Capital Management LLC now owns 548,021 shares of the company's stock valued at $15,263,000 after buying an additional 6,729 shares in the last quarter. Finally, Swiss National Bank grew its position in shares of Ethan Allen Interiors by 3.8% in the 2nd quarter. Swiss National Bank now owns 46,100 shares of the company's stock worth $1,284,000 after buying an additional 1,700 shares during the period. 83.80% of the stock is currently owned by institutional investors.

About Ethan Allen Interiors

Ethan Allen Interiors Inc NYSE: ETD is a vertically integrated manufacturer and retailer of home furnishings, offering a broad range of furniture, upholstery, case goods and decorative accessories. The company designs and produces the majority of its products in its own North American manufacturing facilities, maintaining close control over quality, craftsmanship and production schedules. Through its network of company-operated and franchised Design Centers and galleries, Ethan Allen delivers a full-service offering that includes on-site interior design consultations and project management.

Founded in 1932 as a small Colonial-Revival furniture maker in northern Vermont, Ethan Allen has grown into a global brand known for its timeless styles and customization options.

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