La-Z-Boy (NYSE:LZB) Downgraded by Zacks Research to Strong Sell

La-Z-Boy (NYSE:LZB) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Thursday,Zacks.com reports.

Several other brokerages also recently commented on LZB. KeyCorp reduced their price target on shares of La-Z-Boy from $46.00 to $40.00 and set an “overweight” rating for the company in a research report on Thursday. Weiss Ratings lowered shares of La-Z-Boy from a “buy (b-)” rating to a “hold (c)” rating in a research note on Thursday. Finally, Wall Street Zen cut shares of La-Z-Boy from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, La-Z-Boy currently has an average rating of “Hold” and an average price target of $39.50.

La-Z-Boy Trading Up 0.5%

Shares of LZB opened at $33.82 on Thursday. The business’s 50-day moving average price is $39.73 and its 200 day moving average price is $36.85. The stock has a market capitalization of $1.35 billion, a P/E ratio of 17.17, a P/E/G ratio of 1.08 and a beta of 1.27. La-Z-Boy has a 1-year low of $29.03 and a 1-year high of $44.90.

La-Z-Boy (NYSE:LZB) last posted its quarterly earnings data on Tuesday, August 18th. The company reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.06). La-Z-Boy had a return on equity of 11.79% and a net margin of 3.86%.The company had revenue of $475.69 million for the quarter, compared to analyst estimates of $501.44 million. During the same quarter in the previous year, the firm posted $0.47 EPS. La-Z-Boy’s quarterly revenue was down 3.4% on a year-over-year basis. On average, research analysts predict that La-Z-Boy will post 2.84 earnings per share for the current year.

Insider Activity at La-Z-Boy

In other news, VP Raphaell Z. Richmond sold 13,671 shares of the company’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $39.83, for a total value of $544,515.93. Following the transaction, the vice president owned 51,695 shares in the company, valued at $2,059,011.85. This represents a 20.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Terrence James Linz sold 2,500 shares of the stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $40.23, for a total transaction of $100,575.00. Following the completion of the sale, the insider directly owned 64,383 shares of the company’s stock, valued at $2,590,128.09. This trade represents a 3.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 66,299 shares of company stock worth $2,677,491. Company insiders own 3.12% of the company’s stock.

Institutional Investors Weigh In On La-Z-Boy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quarry LP lifted its position in La-Z-Boy by 4,785.7% in the 4th quarter. Quarry LP now owns 684 shares of the company’s stock worth $25,000 after buying an additional 670 shares in the last quarter. Versant Capital Management Inc grew its holdings in shares of La-Z-Boy by 172.8% during the 2nd quarter. Versant Capital Management Inc now owns 652 shares of the company’s stock valued at $26,000 after acquiring an additional 413 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of La-Z-Boy during the 2nd quarter valued at $28,000. EverSource Wealth Advisors LLC increased its stake in shares of La-Z-Boy by 290.0% in the second quarter. EverSource Wealth Advisors LLC now owns 901 shares of the company’s stock worth $33,000 after acquiring an additional 670 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its stake in shares of La-Z-Boy by 99.0% in the second quarter. Geneos Wealth Management Inc. now owns 1,140 shares of the company’s stock worth $42,000 after acquiring an additional 567 shares during the last quarter. Hedge funds and other institutional investors own 99.62% of the company’s stock.

Key La-Z-Boy News

Here are the key news stories impacting La-Z-Boy this week:

• Positive Sentiment: La-Z-Boy’s retail business showed momentum, with retail-segment sales reportedly rising 16% and the company returning $35 million to shareholders. La-Z-Boy Shatters Records: 16% Retail Segment Sales Growth and $35 Million Shareholder Returns
• Positive Sentiment: Management expects second-quarter sales of $500 million to $520 million while investing in supply-chain capacity and retail expansion, signaling confidence in longer-term growth. La-Z-Boy expects Q2 sales of $500M-$520M while investing in supply chain and retail expansion
• Neutral Sentiment: Recent coverage indicates that strong retail performance was offset by weaker wholesale results, highlighting uneven demand across La-Z-Boy’s distribution channels. La-Z-Boy’s retail momentum offset by wholesale numbers in Q1
• Negative Sentiment: Sidoti lowered its FY2027 EPS forecast to $2.55 from $2.66, cut Q2 2027 estimates to $0.48 from $0.73, and reduced Q3 and Q4 estimates to $0.59 and $1.04, respectively. Its Q2 2028 forecast fell to $0.58 from $0.87.
• Negative Sentiment: Sidoti also reduced FY2028 EPS expectations to $3.00 from $3.32. The repeated estimate cuts imply analysts see softer profitability ahead, which is likely weighing on LZB shares.
• Negative Sentiment: La-Z-Boy’s latest reported quarter missed expectations, with EPS of $0.43 versus $0.49 expected and revenue of $475.69 million versus $501.44 million forecast; revenue declined 3.4% year over year.

La-Z-Boy Company Profile

La-Z-Boy Incorporated (NYSE: LZB) is a leading U.S. manufacturer and marketer of residential furniture, best known for its upholstered recliners, sofas, stationary chairs and sleeper sofas. The company offers a broad range of products in both fabric and leather, complemented by occasional tables, desks, lamps and other home furnishings through its branded retail network.

Founded in 1927 by cousins Edward Knabusch and Edwin Shoemaker in Monroe, Michigan, La-Z-Boy pioneered the modern reclining chair.