Ethan Allen Interiors Inc. (ETH) Looks Interesting In A Number Of Ways

It has been reported that multiple insider activity took place at Ethan Allen Interiors Inc. (ETH). Director Carlson James B. acquired 2,000 shares for $18,084 in transaction occurred on 2018/11/16. After making this transaction, Director owns a direct stake of 18 shares, worth $412,315, as per the last closing price. On 2018/11/06 KATHWARI M FAROOQ, Chairman, President & CEO, 10% Owner at ETH, purchased 10,000 shares at an average price of $19.5 per share. The new stake is valued at $53,249,788.

Chairman, President & CEO, 10% Owner, KATHWARI M FAROOQ had divested 37,882 shares for $2,324,302 through a trade on 2018/09/21. Following this activity, the insider holds 6 shares worth $52,994,086 as of recent close.

iShares Core S&P Smallcap ETF revealed as top hedge fund owner in Ethan Allen Interiors Inc. (ETH) with a stake of over 1.48M ETH shares as of March 30, with a market value of approx. $28.38M as of today. The second largest holder, Vanguard Total Stock Market Index Fund, with 620943 shares which equates to $12.88M worth of the stock. At third is Vanguard Small-Cap Index Fund, which stood pat with 610018 shares, a 2.11% position in Ethan Allen Interiors Inc., worth $12.66M. The insider holding in stood at 0.1% while institutions hold 92.8%.

Ethan Allen Interiors Inc. (NYSE:ETH) rose 0.97% in recent trade and currently has a stock-market value of $601.46M. The shares finished at $22.8, after trading as low as $22.33 earlier in the session. It hit an intraday high Wednesday at $22.83. Trading activity significantly weakened as the volume at ready counter decreased to 301,621 shares versus 325,400 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 294,748 shares. The stock is now 40.14% above against its bear-market low of $16.27 on January 29, 2019. It has retreated -12.06% since it’s 52-week high of $25.55 reached in July. Now the market price is up 0.32% on the year and up 36.59% YTD.

ETH stock’s 50 day simple moving average (SMA 50) price is $20.25 and its 200-day simple moving average (SMA 200) price is $20.25. The company’s stock currently has a total float of 24.17M shares. Its weekly volatility is hovering around 2.46% and felt 2.94% volatility in price over a month. On the upside, the share price will test short term resistance at around $22.98. On a downside, the stock is likely to find some support, which begins at $22.48. The failure to get near-term support could push it to $22.15.

It had seen a change in price target from analysts at Telsey Advisory Group, who reiterated the stock at Market Perform on April 30 but moved PT from $20 to $21. Analysts at Raymond James, shed their positive views on February 04 by lowering it fromOutperform to Mkt Perform. The stock lost favor of Dougherty & Company analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on January 29.

When looking at valuations, Ethan Allen Interiors Inc. (ETH) has a cheap P/E of 15.12x as compared to industry average of 23.79x. Moreover, it trades for 13.16 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.63x price/book and 0.78x price/sales. Compared to others, Ethan Allen Interiors Inc. is in a different league with regards to profitability, having net margins of 5.3%. To put some perspective around this, the industry’s average net margin is 6.65%. ETH’s ROE is 10.7%, which is also considerably worse than the industry’s ROE of 23.82%. It’s also very liquid in the near term, with a current ratio of 1.8. The stock has a debt/capital of 0.02.

Shares of ETH have gained 10.6% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Ethan Allen Interiors Inc. (NYSE:ETH) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 2 quarters (16%), whereas at 5 occasion EPS met analyst expectations. ETH last reported earnings that exceeded expectations. The company raked in $0.31 per share, -99.59% change on the same period last year. That was better than consensus for $0.18. Revenue for the recent quarter stood at $177.83 million, down -2% on last year and below the $181.01 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $186.49 million to $198.1 million, which should be compared with $0 generated last year. EPS is seen in a range of $0.47 to $0.48, against the 0 reported a year ago.