Lynn Jennifer McCurry At La-Z-Boy Exercises Options

A large exercise of company stock options by Lynn Jennifer McCurry, Chief Accounting Officer at La-Z-Boy LZB was disclosed in a new SEC filing on August 28, as part of an insider exercise.

What Happened: McCurry, Chief Accounting Officer at La-Z-Boy, made a strategic move by exercising stock options for 2,914 shares of LZB as detailed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $47,673.

La-Z-Boy shares are currently trading down by 0.0%, with a current price of $40.77 as of Thursday morning. This brings the total value of McCurry's 2,914 shares to $47,673.

Delving into La-Z-Boy's Background

La-Z-Boy Inc is a U.S.-based company that manufactures, distributes, and retails upholstery furniture products. It is a producer of reclining chairs and distributors of residential furniture in the U.S. The company chiefly operates in the United States but also has secondary operations in Canada and other countries. The company's reportable segments include the Wholesale segment, which manufactures and imports upholstered furniture; and Retail, which sells upholstered and case goods furniture to the end consumer. The majority of the company's revenue is derived from its Wholesale segment.

La-Z-Boy: Financial Performance Dissected

Revenue Growth: Over the 3 months period, La-Z-Boy showcased positive performance, achieving a revenue growth rate of 2.88% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: With a high gross margin of 43.05%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): La-Z-Boy's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.62.

Debt Management: La-Z-Boy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.48.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: La-Z-Boy's P/E ratio of 14.51 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.85 is lower than the industry average, implying a discounted valuation for La-Z-Boy's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 6.23, La-Z-Boy could be considered undervalued.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of La-Z-Boy's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.