La-Z-Boy (NYSE:LZB) Lowered to Strong Sell Rating by Zacks Research

Zacks Research cut shares of La-Z-Boy (NYSE:LZB) from a hold rating to a strong sell rating in a report issued on Thursday morning,Zacks.com reports.

Several other brokerages have also weighed in on LZB. Wall Street Zen lowered La-Z-Boy from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. KeyCorp reduced their target price on La-Z-Boy from $46.00 to $40.00 and set an “overweight” rating on the stock in a research report on Thursday. Finally, Weiss Ratings lowered La-Z-Boy from a “buy (b-)” rating to a “hold (c)” rating in a research note on Thursday. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $39.50.

La-Z-Boy Trading Up 0.5%

Shares of LZB stock opened at $33.82 on Thursday. La-Z-Boy has a twelve month low of $29.03 and a twelve month high of $44.90. The company’s 50-day moving average price is $39.73 and its 200-day moving average price is $36.85. The stock has a market cap of $1.35 billion, a price-to-earnings ratio of 17.17, a PEG ratio of 1.08 and a beta of 1.27.

La-Z-Boy (NYSE:LZB) last released its quarterly earnings data on Tuesday, August 18th. The company reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.06). La-Z-Boy had a return on equity of 11.79% and a net margin of 3.86%.The firm had revenue of $475.69 million for the quarter, compared to analyst estimates of $501.44 million. During the same quarter in the previous year, the business posted $0.47 earnings per share. La-Z-Boy’s revenue for the quarter was down 3.4% on a year-over-year basis. As a group, equities research analysts predict that La-Z-Boy will post 2.84 EPS for the current year.

La-Z-Boy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Thursday, September 3rd will be issued a $0.242 dividend. This represents a $0.97 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Thursday, September 3rd. La-Z-Boy’s dividend payout ratio is currently 48.73%.

Insider Transactions at La-Z-Boy

In other La-Z-Boy news, VP Raphaell Z. Richmond sold 13,671 shares of the business’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $39.83, for a total value of $544,515.93. Following the sale, the vice president owned 51,695 shares of the company’s stock, valued at $2,059,011.85. The trade was a 20.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Michael Adam Leggett sold 9,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $41.66, for a total value of $374,940.00. Following the completion of the sale, the senior vice president directly owned 47,551 shares in the company, valued at approximately $1,980,974.66. The trade was a 15.91% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 66,299 shares of company stock worth $2,677,491. 3.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On La-Z-Boy

Institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of La-Z-Boy in the 2nd quarter valued at $265,535,000. Vanguard Group Inc. boosted its holdings in La-Z-Boy by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 4,814,114 shares of the company’s stock valued at $179,422,000 after acquiring an additional 38,513 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of La-Z-Boy by 1.5% in the first quarter. Dimensional Fund Advisors LP now owns 2,694,255 shares of the company’s stock valued at $86,594,000 after purchasing an additional 38,870 shares in the last quarter. Franklin Resources Inc. boosted its position in La-Z-Boy by 24.0% in the 4th quarter. Franklin Resources Inc. now owns 1,851,873 shares of the company’s stock valued at $69,019,000 after buying an additional 358,945 shares during the period. Finally, LSV Asset Management boosted its holdings in La-Z-Boy by 0.8% in the fourth quarter. LSV Asset Management now owns 1,476,882 shares of the company’s stock valued at $55,043,000 after purchasing an additional 11,983 shares during the period. 99.62% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting La-Z-Boy

Here are the key news stories impacting La-Z-Boy this week:

• Positive Sentiment: La-Z-Boy’s retail business showed momentum, with retail-segment sales reportedly rising 16% and the company returning $35 million to shareholders. La-Z-Boy Shatters Records: 16% Retail Segment Sales Growth and $35 Million Shareholder Returns
• Positive Sentiment: Management expects second-quarter sales of $500 million to $520 million while investing in supply-chain capacity and retail expansion, signaling confidence in longer-term growth. La-Z-Boy expects Q2 sales of $500M-$520M while investing in supply chain and retail expansion
• Neutral Sentiment: Recent coverage indicates that strong retail performance was offset by weaker wholesale results, highlighting uneven demand across La-Z-Boy’s distribution channels. La-Z-Boy’s retail momentum offset by wholesale numbers in Q1
• Negative Sentiment: Sidoti lowered its FY2027 EPS forecast to $2.55 from $2.66, cut Q2 2027 estimates to $0.48 from $0.73, and reduced Q3 and Q4 estimates to $0.59 and $1.04, respectively. Its Q2 2028 forecast fell to $0.58 from $0.87.
• Negative Sentiment: Sidoti also reduced FY2028 EPS expectations to $3.00 from $3.32. The repeated estimate cuts imply analysts see softer profitability ahead, which is likely weighing on LZB shares.
• Negative Sentiment: La-Z-Boy’s latest reported quarter missed expectations, with EPS of $0.43 versus $0.49 expected and revenue of $475.69 million versus $501.44 million forecast; revenue declined 3.4% year over year.

About La-Z-Boy

La-Z-Boy Incorporated (NYSE: LZB) is a leading U.S. manufacturer and marketer of residential furniture, best known for its upholstered recliners, sofas, stationary chairs and sleeper sofas. The company offers a broad range of products in both fabric and leather, complemented by occasional tables, desks, lamps and other home furnishings through its branded retail network.

Founded in 1927 by cousins Edward Knabusch and Edwin Shoemaker in Monroe, Michigan, La-Z-Boy pioneered the modern reclining chair.