Hon Industries Story

<div class='circular--portrait' style='background:#FF0000;color: #F8F8FF;font-size:4em;'>HI</div>
HNI -- USA Stock  

USD 39.72  0.54  1.34%

While some baby boomers are getting worried about industrials space, it is reasonable to concentrate on Hon Industries against economic and market trends. As we have suggested previously, Hon Industries is beginning its drop as stockholders shift to be more bearish due to the increased sector volatility. The returns on the market and returns on Hon Industries appear somewhat related for the last few months. Fragile forward indicators of the company may also hint to signs of long-run losses for Hon Industries stockholders. Hon Industries is scheduled to announce its earnings tomorrow.
Published over a month ago
View all stories for Hon Industries | View All Stories
Our current technical analysis of Hon Industries (NYSE:HNI)
The company's average rating is Buy from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Hon Industries market sentiment investors' perception of the future value of Hon Industries. Let us look at a few aspects of Hon Industries technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Hon Industries. In general, we focus on analyzing Hon Industries stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Hon Industries's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Hon Industries's intrinsic value. In addition to deriving basic predictive indicators for Hon Industries, we also check how macroeconomic factors affect Hon Industries price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Hon Industries' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Hon Industries in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hon Industries. Your research has to be compared to or analyzed against Hon Industries' peers to derive any actionable benefits. When done correctly, Hon Industries' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Hon Industries.

How does Hon Industries Stands against Peers?

Analyzing Hon Industries competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Hon Industries across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Hon Industries Competition Details

How Hon Industries utilizes its cash?

To perform a cash flow analysis of Hon Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Hon Industries is receiving and how much cash it distributes out in a given period. The Hon Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Hon Industries Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 214.47 Million

Acquisition by Dhanusha Sivajee of 241 shares of Hon Industries subject to Rule 16b-3

Legal trades by Hon Industries insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Hon Industries insider trading alert for grant of common stock by Dhanusha Sivajee, the corporate stakeholder, on 19th of February 2021. This event was filed by Hni Corp with SEC on 2021-02-19. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Hon Industries has a beta of -0.2688. Let's try to break down what Hon Industries's beta means in this case. Hon Industries returns are very sensitive to returns on the market. As the market goes up or down, Hon Industries is expected to follow. The beta indicator helps investors understand whether Hon Industries moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Hon Industries deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
The small drop in market price for the last few months may raise some interest from stockholders. The stock closed today at a share price of 35.59 on 519,800 in trading volume. The company directors and management did not add much value to Hon Industries investors in January. However, diversifying your holdings with Hon Industries or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.45. The current volatility is consistent with the ongoing market swings in January 2021 as well as with Hon Industries unsystematic, company-specific events.

Our perspective of the current Hon Industries drop

Current maximum drawdown is at 12.87. Hon Industries exhibits very low volatility with skewness of 0.65 and kurtosis of 0.7. However, we advise investors to further study Hon Industries technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hon Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hon Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Bottom Line

When is the right time to buy or sell Hon Industries? Buying stocks such as Hon Industries isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some stockholders may not share our view we believe it may be a good time to quit Hon Industries as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Hon Industries.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Hon Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com