Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here is What Hedge Funds Think About Ethan Allen Interiors Inc. (ETH): Tempur-Pedic International Inc. (TPX), American Woodmark Corporation (AMWD)

Ethan Allen Interiors Inc. (NYSE:ETH) was in 11 hedge funds’ portfolio at the end of the fourth quarter of 2012. ETH shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. There were 8 hedge funds in our database with ETH positions at the end of the previous quarter.

Ethan Allen Interiors Inc. (ETH)

At the moment, there are tons of indicators investors can use to track stocks. A pair of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can outperform the broader indices by a solid amount (see just how much).

Just as key, optimistic insider trading sentiment is a second way to break down the marketplace. Just as you’d expect, there are many reasons for an insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if shareholders know what to do (learn more here).

Keeping this in mind, let’s take a gander at the key action surrounding Ethan Allen Interiors Inc. (NYSE:ETH).

How are hedge funds trading Ethan Allen Interiors Inc. (NYSE:ETH)?

At year’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of 38% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes substantially.

When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the largest position in Ethan Allen Interiors Inc. (NYSE:ETH). Royce & Associates has a $96 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Jeffrey Vinik of Vinik Asset Management, with a $9 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other peers with similar optimism include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and Donald Chiboucis’s Columbus Circle Investors.

As aggregate interest increased, key hedge funds have jumped into Ethan Allen Interiors Inc. (NYSE:ETH) headfirst. Vinik Asset Management, managed by Jeffrey Vinik, initiated the most outsized position in Ethan Allen Interiors Inc. (NYSE:ETH). Vinik Asset Management had 9 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also initiated a $3 million position during the quarter. The other funds with brand new ETH positions are Mario Gabelli’s GAMCO Investors, Charles Davidson’s Wexford Capital, and Ken Gray and Steve Walsh’s Bryn Mawr Capital.

What do corporate executives and insiders think about Ethan Allen Interiors Inc. (NYSE:ETH)?

Bullish insider trading is at its handiest when the company in focus has seen transactions within the past 180 days. Over the last 180-day time frame, Ethan Allen Interiors Inc. (NYSE:ETH) has seen zero unique insiders purchasing, and 15 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Ethan Allen Interiors Inc. (NYSE:ETH). These stocks are Tempur-Pedic International Inc. (NYSE:TPX), American Woodmark Corporation (NASDAQ:AMWD), Mattress Firm Holding Corp (NASDAQ:MFRM), Select Comfort Corp. (NASDAQ:SCSS), and La-Z-Boy Incorporated (NYSE:LZB). This group of stocks are the members of the home furnishings & fixtures industry and their market caps are similar to ETH’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Tempur-Pedic International Inc. (NYSE:TPX) 15 1 3
American Woodmark Corporation (NASDAQ:AMWD) 9 0 4
Mattress Firm Holding Corp (NASDAQ:MFRM) 8 0 8
Select Comfort Corp. (NASDAQ:SCSS) 16 0 3
La-Z-Boy Incorporated (NYSE:LZB) 11 0 5

With the returns exhibited by the aforementioned time-tested strategies, everyday investors should always watch hedge fund and insider trading sentiment, and Ethan Allen Interiors Inc. (NYSE:ETH) is an important part of this process.

Click here to learn why you should track hedge funds

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!