Ethan Allen CEO Kathwari sells $281,517 in stock

M. Farooq Kathwari, Chairman, President, and CEO of Ethan Allen Interiors Inc . (NYSE:ETD), sold shares worth approximately $281,517, according to a recent SEC filing. The transactions, executed on April 17, 2025, involved the sale of 10,700 shares of common stock at a price of $26.31 per share. The company, currently trading at $26.51, maintains strong financial health with impressive gross profit margins of 61% and offers a substantial 7.4% dividend yield. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

The sales were part of a pre-established trading plan under Rule 10b5-1, which was adopted on March 14, 2024, and became effective on June 17, 2024. This plan was previously disclosed in the company’s quarterly report filed on April 24, 2024. Additionally, the Irfan Kathwari Foundation, of which Mr. Kathwari is deemed to beneficially own shares, sold 8,000 shares on the same day under the same trading plan. For deeper insights into ETD’s valuation and financial metrics, including 10 additional ProTips, check out the comprehensive research report available on InvestingPro.

Following these transactions, Mr. Kathwari directly owns 1,621,905 shares. The filing also notes various indirect holdings, including shares held by his spouse, in a 401(k) plan, and in several trusts for family members. The company maintains a healthy balance sheet with a current ratio of 2.11, indicating strong liquidity to meet its short-term obligations.

In other recent news, Ethan Allen reported its fiscal 2025 second-quarter earnings, revealing consolidated net sales of $157.3 million, a decrease from the previous year’s $167.3 million. The company’s diluted earnings per share also fell to $0.59 from $0.68. Despite these declines, Ethan Allen experienced a significant uptick in written orders, with retail and wholesale segments increasing by 15.8% and 14.3%, respectively. Analysts from Keybanc highlighted the strong order trends, noting a sequential acceleration that outpaced industry peers. Ethan Allen’s strategic focus on North American manufacturing, with approximately 75% of its furniture produced locally, was emphasized as a competitive advantage amid global tariffs. CEO Farooq Kathwari reiterated the company’s commitment to quality and innovation, supported by advanced technology and new product offerings. The company ended the quarter with a robust balance sheet, holding $184.2 million in cash and investments. Additionally, Ethan Allen announced a regular quarterly cash dividend of $0.39 per share, scheduled for February 26, 2025.

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