Ethan Allen CEO Kathwari sells shares totaling $306,769

M. Farooq Kathwari, the Chairman, President, and CEO of Ethan Allen Interiors Inc . (NYSE:ETD), recently executed a series of stock sales, according to a regulatory filing. The transactions, which took place on January 17, 2025, were part of a pre-established Rule 10b5-1 trading plan. The company, which InvestingPro analysis shows maintains strong financial health with impressive gross profit margins of 61%, currently trades slightly below its Fair Value.

Kathwari sold a total of 10,700 shares of Ethan Allen common stock at a price of $28.67 per share, amounting to approximately $306,769. Following these sales, Kathwari holds 1,651,905 shares directly. Additionally, shares are held indirectly through various personal trusts and a 401(k) plan. The stock currently trades between its 52-week range of $26.53 to $35.62, with the company maintaining a notable 6.8% dividend yield and a 29-year track record of consecutive dividend payments.

These transactions were conducted under a trading plan adopted on March 14, 2024, and became effective on June 17, 2024. The plan had been disclosed in the company's quarterly report filed in April 2024. Notably, the Irfan Kathwari Foundation, which Kathwari is associated with, also sold 8,000 shares under the same trading plan. For deeper insights into ETD's valuation and financial metrics, including 8 additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Ethan Allen Interiors Inc. reported mixed results for the first quarter of fiscal year 2025. The company recorded sales of $154.3 million, marking a 5.8% decrease compared to the previous year. Despite this decrease, the company demonstrated financial resilience with a robust gross margin of 60.8% and an operating income of $17.6 million. Furthermore, Ethan Allen declared a regular cash dividend of $0.39 per share.

In addition to these financial results, Ethan Allen experienced a $2 million sales impact from Hurricane Helene but anticipates recovery in the upcoming quarter. At the company's annual meeting, all six director nominees were elected to serve a one-year term, and the compensation of the company's named executive officers was approved. These recent developments underscore Ethan Allen's adaptability and resilience in navigating a complex market environment.

The company remains debt-free and generated $15.1 million in cash from operating activities. Despite the decrease in sales, Ethan Allen has seen an increase in average ticket prices and qualified traffic, indicating shareholder confidence in both the board's governance and the company's executive compensation framework.

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