Ethan Allen Interiors (NYSE:ETD) Shares Gap Down After Insider Selling

Ethan Allen Interiors Inc. (NYSE:ETD)’s stock price gapped down prior to trading on Thursday after an insider sold shares in the company. The stock had previously closed at $24.71, but opened at $21.82. Ethan Allen Interiors shares last traded at $21.9960, with a volume of 105,843 shares traded.

Specifically, CEO M Farooq Kathwari sold 1,063 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $25.04, for a total value of $26,617.52. Following the completion of the sale, the chief executive officer directly owned 22,077 shares in the company, valued at $552,808.08. This represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO M Farooq Kathwari sold 22,811 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $25.04, for a total transaction of $571,187.44. Following the transaction, the chief executive officer owned 1,465,530 shares in the company, valued at $36,696,871.20. The trade was a 1.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ETD shares. Zacks Research lowered shares of Ethan Allen Interiors from a “hold” rating to a “strong sell” rating in a research note on Thursday, July 30th. Telsey Advisory Group dropped their price target on Ethan Allen Interiors from $24.00 to $22.00 and set a “market perform” rating for the company in a research report on Thursday, July 30th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Ethan Allen Interiors in a report on Friday, July 31st. One analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Ethan Allen Interiors currently has an average rating of “Sell” and a consensus target price of $22.00.

Ethan Allen Interiors Price Performance

The stock has a market cap of $560.38 million, a PE ratio of 14.11 and a beta of 1.03. The stock’s fifty day moving average is $22.87 and its 200-day moving average is $22.10.

Ethan Allen Interiors (NYSE:ETD) last issued its earnings results on Wednesday, July 29th. The company reported $0.36 EPS for the quarter, topping analysts’ consensus estimates of $0.34 by $0.02. The company had revenue of $146.75 million for the quarter, compared to the consensus estimate of $148.70 million. Ethan Allen Interiors had a net margin of 6.88% and a return on equity of 7.88%. Ethan Allen Interiors’s quarterly revenue was down 8.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.49 earnings per share. On average, sell-side analysts expect that Ethan Allen Interiors Inc. will post 1.3 EPS for the current fiscal year.

Ethan Allen Interiors Announces Dividend

The company also recently declared a special dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd will be given a dividend of $3.00 per share. The ex-dividend date of this dividend is Thursday, September 3rd. Ethan Allen Interiors’s payout ratio is presently 100.00%.

Institutional Trading of Ethan Allen Interiors

Several institutional investors have recently made changes to their positions in the company. California State Teachers Retirement System grew its position in Ethan Allen Interiors by 2,066.1% in the second quarter. California State Teachers Retirement System now owns 517,975 shares of the company’s stock worth $11,572,000 after acquiring an additional 494,062 shares during the period. Empowered Funds LLC acquired a new stake in shares of Ethan Allen Interiors during the 2nd quarter worth about $2,101,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Ethan Allen Interiors during the 2nd quarter worth about $748,000. Bank of America Corp DE purchased a new stake in Ethan Allen Interiors in the 2nd quarter valued at about $5,445,000. Finally, Freestone Grove Partners LP purchased a new stake in Ethan Allen Interiors in the 2nd quarter valued at about $381,000. Hedge funds and other institutional investors own 83.80% of the company’s stock.

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.