La-Z-Boy (NYSE:LZB) Shares Gap Up on Better-Than-Expected Earnings

Shares of La-Z-Boy Incorporated (NYSE:LZB) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $29.59, but opened at $34.29. La-Z-Boy shares last traded at $35.26, with a volume of 657,007 shares.

The company reported $0.71 EPS for the quarter, topping analysts’ consensus estimates of $0.54 by $0.17. The company had revenue of $522.48 million for the quarter, compared to the consensus estimate of $517.63 million. La-Z-Boy had a return on equity of 11.34% and a net margin of 4.35%.The company’s quarterly revenue was up .3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.71 EPS. La-Z-Boy has set its Q3 2026 guidance at EPS.

La-Z-Boy Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Thursday, December 4th will be issued a $0.242 dividend. This represents a $0.97 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Thursday, December 4th. This is a positive change from La-Z-Boy’s previous quarterly dividend of $0.22. La-Z-Boy’s dividend payout ratio is currently 40.18%.

Analyst Ratings Changes

LZB has been the topic of several recent research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of La-Z-Boy in a research note on Wednesday, October 8th. Sidoti upgraded shares of La-Z-Boy from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $36.00 to $39.00 in a research report on Wednesday. Finally, Zacks Research upgraded La-Z-Boy from a “strong sell” rating to a “hold” rating in a research report on Monday, October 20th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, La-Z-Boy presently has an average rating of “Moderate Buy” and a consensus target price of $42.50.

Insider Buying and Selling at La-Z-Boy

In related news, Director Janet Kerr sold 3,372 shares of the company’s stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $35.70, for a total value of $120,380.40. Following the completion of the sale, the director owned 3,653 shares in the company, valued at approximately $130,412.10. This represents a 48.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.66% of the stock is currently owned by company insiders.

Institutional Trading of La-Z-Boy

A number of hedge funds have recently modified their holdings of LZB. LSV Asset Management grew its holdings in shares of La-Z-Boy by 5.0% during the first quarter. LSV Asset Management now owns 1,604,462 shares of the company’s stock valued at $62,718,000 after buying an additional 76,925 shares in the last quarter. Franklin Resources Inc. boosted its position in La-Z-Boy by 208.8% during the 3rd quarter. Franklin Resources Inc. now owns 1,492,928 shares of the company’s stock worth $51,237,000 after acquiring an additional 1,009,428 shares during the period. American Century Companies Inc. boosted its position in La-Z-Boy by 7.2% during the 3rd quarter. American Century Companies Inc. now owns 1,434,642 shares of the company’s stock worth $49,237,000 after acquiring an additional 95,737 shares during the period. Thrivent Financial for Lutherans grew its stake in La-Z-Boy by 7.8% during the 3rd quarter. Thrivent Financial for Lutherans now owns 1,391,236 shares of the company’s stock valued at $47,747,000 after acquiring an additional 100,416 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of La-Z-Boy by 0.9% in the 2nd quarter. Geode Capital Management LLC now owns 1,016,917 shares of the company’s stock valued at $37,804,000 after purchasing an additional 9,224 shares during the period. Hedge funds and other institutional investors own 99.62% of the company’s stock.

La-Z-Boy Stock Up 19.2%

The firm has a market capitalization of $1.45 billion, a PE ratio of 16.06 and a beta of 1.26. The business’s 50-day moving average price is $32.73 and its 200-day moving average price is $36.75.

La-Z-Boy Company Profile

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures, and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, entertainment centers, and occasional pieces.