In a recent transaction on June 4, HNI Corp (NYSE:HNI) VP of Member Relations, Meade Donna D, sold shares in the company for a total value of $459,700. The executive sold 10,000 shares of common stock at an average price of $45.97, with individual transactions ranging from $45.725 to $46.520.
The sale was disclosed in a regulatory filing with the Securities and Exchange Commission. Following the sale, Meade Donna D's direct holdings in the company decreased to 32,308.303 shares of common stock. Additionally, the executive indirectly owns 1,414.565 shares through a Profit-Sharing Retirement Plan.
On the same day, Meade also acquired 10,000 shares of HNI Corp common stock at a price of $32.03 per share, amounting to a total of $320,300. This transaction was executed through the exercise of options as part of the company's employee stock option plan.
HNI Corp, based in Muscatine, Iowa, operates within the office furniture industry and is known for its manufacturing operations. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol HNI.
Investors often monitor the buying and selling activities of company executives as these transactions can provide insight into their perspective on the company's future performance. The transactions by Meade Donna D were conducted in accordance with SEC regulations, and full details of the sales, including the number of shares sold at each price point, are available upon request from HNI Corporation or the SEC.
The filings did not specify a particular reason for the recent sales and acquisitions by the executive, which are often part of personal financial management strategies or predetermined trading plans.
In other recent news, HNI Corporation has been in the spotlight due to a series of significant developments. The company has announced plans to close its manufacturing plant in Hickory, North Carolina by the first half of 2025. This strategic decision is expected to yield approximately $11 million in annual savings, in addition to the previously announced cost synergies from the acquisition of Kimball International, bringing the total estimated cost synergies to $50 million.
Benchmark, a financial analysis firm, has adjusted its outlook on HNI Corp, raising the price target from $54 to $57 while maintaining a Buy rating. This revision comes in light of the planned plant closure, and the company's impressive first-quarter fiscal 2024 earnings, which nearly tripled from the previous year. Benchmark analyst Reuben Garner has revised the company's earnings per share (EPS) estimate for the following year upwards to $3.60 from a previous estimate of $3.40.
Despite declining sales in its Workplace Furnishings and Residential Building Products segments, HNI Corp showcased its strongest gross margin performance since the first quarter of 2007. Benchmark has revised its EPS estimates for HNI Corp upwards by $0.20, setting them at $3.10 for the current year and $3.40 for the following year. These are the latest developments for HNI Corporation, a company that continues to navigate its path with strategic decisions and operational efficiencies.
InvestingPro Insights
As HNI Corp (NYSE:HNI) makes headlines with recent executive transactions, investors and analysts are closely watching the company's financial health and stock performance. Based on the latest data from InvestingPro, HNI Corp has a market capitalization of approximately $2.17 billion and is trading at a P/E ratio of 31.96. Notably, the company's adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 16.54, reflecting a more favorable earnings multiple when considering expected future earnings.
The company's revenue growth is also on a positive trajectory, with a notable increase of 22.73% in the quarterly revenue as of Q1 2024. This growth is complemented by a solid gross profit margin of 39.63% for the same period. Additionally, HNI Corp has demonstrated a robust return over the last year, with a one-year price total return of 87.46%, indicating strong market confidence.
InvestingPro Tips highlight that HNI has raised its dividend for 13 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. Moreover, analysts predict the company will be profitable this year, which aligns with the company's profitable performance over the last twelve months. However, investors should be aware that three analysts have revised their earnings expectations downwards for the upcoming period, and the stock is currently trading at a high earnings multiple.
For those considering an investment in HNI Corp, there are additional InvestingPro Tips available that could further inform your decision. With the use of coupon code PRONEWS24, interested investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights. Visit https://www.investing.com/pro/HNI for more details and to see the total number of additional tips available for HNI Corp.
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