Muscatine, IA – HNI Corp (NYSE:HNI) Director Larry B. Porcellato has sold a total of 2,000 shares of the company's common stock, according to a recent SEC filing. The transaction, which took place on July 12, 2024, fetched a weighted average price of $48.009 per share, resulting in a total sale amount of $96,018.
The shares were sold at prices ranging from $48.00 to $48.04, as noted in the filing's footnotes. Porcellato, who has been associated with HNI Corp as a director, carried out this transaction under a Rule 10b5-1 trading plan, which was adopted on December 1, 2023. Such plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material, non-public information, thereby helping to avoid potential concerns about insider trading.
Following the sale, Porcellato continues to hold 39,724.5835 shares of HNI Corp's common stock. This figure includes reinvested dividends of 173.9819 shares acquired under the HNI Corporation Directors Deferred Compensation Plan.
HNI Corp, with its headquarters in Muscatine, Iowa, operates in the office furniture sector, providing products under various brands. The company's stock is traded on the New York Stock Exchange under the ticker symbol HNI.
Investors and stakeholders typically monitor insider transactions as they may provide insights into the executives' perspective on the company's future performance. However, it is essential to consider that selling shares does not necessarily indicate a lack of confidence in the company by the insider; it may be related to personal financial management or other reasons not directly associated with the company's performance.
The details of the transaction, including the range of prices at which the shares were sold, have been made available in the SEC filing, and further information can be provided upon request.
In other recent news, HNI Corporation has seen significant developments in its business strategy. The company recently expanded its Board of Directors with the addition of David Roberts, current President and CEO of Verra Mobility (NASDAQ:VRRM) Corporation, who brings over 30 years of experience in technology, innovation, finance, and more. This move is part of HNI's ongoing efforts to enhance its leadership structure and governance.
In another strategic move, HNI Corporation has announced the closure of its manufacturing plant in Hickory, North Carolina, by the first half of 2025. The decision is expected to save approximately $11 million annually and is part of the company's ongoing integration of Kimball International Inc. This is projected to double the original synergies from the acquisition to $50 million.
Benchmark, a financial analysis firm, has responded to these developments by maintaining a Buy rating on HNI Corp and raising the stock target from $54 to $57. The firm has also revised its earnings per share (EPS) estimate for 2025 upwards to $3.60, driven by factors within the company's control.
HNI Corp's first-quarter fiscal 2024 earnings nearly tripled from the previous year, despite an 8% drop in organic revenue. This performance is attributed to its workplace furnishings profit transformation plan and the strategic acquisition of Kimball International. These recent developments have caught the attention of investors and financial analysts alike.
InvestingPro Insights
In light of the recent insider trading activity at HNI Corp, investors may find value in considering the company's financial performance and market position. According to real-time data from InvestingPro, HNI Corp boasts a market capitalization of $2.3 billion USD, highlighting its considerable presence in the office furniture sector. The company's revenue growth has been impressive, with an increase of 12.09% over the last twelve months leading up to Q1 2024. This is further underscored by a quarterly revenue growth of 22.73% in Q1 2024, indicating a strong start to the year.
Furthermore, HNI Corp's stock has experienced a remarkable return over the past year, with a one-year price total return of 79.0%. This performance is reflected in the stock trading near its 52-week high, at 98.13% of the peak value. Additionally, the company's dividend yield stands at 2.74%, with a dividend growth of 3.12% over the last twelve months, signifying a consistent return to shareholders.
InvestingPro Tips reveal that HNI Corp has raised its dividend for 13 consecutive years and has maintained dividend payments for 54 consecutive years, underscoring the company's commitment to shareholder value. Analysts also predict that the company will be profitable this year, which may contribute to investor confidence in the company's financial health and future prospects.
For investors seeking further analysis and insights, InvestingPro offers additional tips on HNI Corp, which can be accessed at https://www.investing.com/pro/HNI. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing an array of valuable investment tools and data to inform their decisions.
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