Daily Stock Analysis: Hooker Furniture - Friday, February 19

Today we look at a small-cap furniture manufacturing company named Hooker Furniture Corporation. Its trading ticker symbol is HOFT. This is my first ever report on Hooker Furniture Corporation for this portfolio or any of my previous portfolios.

Hooker Furniture Corp is a designer, marketer, and importer of case goods, leather furniture, and fabric-upholstered furniture for the residential, hospitality, and contract markets. 

The company also domestically manufactures premium residential custom leather and custom fabric-upholstered furniture. Its segments are Hooker Branded, Home Meridian, Domestic Upholstery, and others. 

The Hooker Branded segment includes a wide range of design categories, home entertainment, home office, dining, and bedroom furniture, the Home Meridian segment includes Samuel Lawrence Furniture, Pulaski Furniture, Domestic Upholstery includes the domestic upholstery manufacturing operations of Sam Moore and Shenandoah Furniture and others. 

The company generates a majority of its revenue from the Home Meridian Segment.

It sells home furnishing products through retailers comprising independent furniture stores, department stores, mass merchants, national chains, warehouse clubs, catalog merchants, interior designers, and e-commerce retailers principally in North America. 

Hooker Furniture Corporation was founded in 1924 and is headquartered in Martinsville, Virginia.

Three key data points gauge dividend equities or funds like Hooker Furniture Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

HOFT Price

Hooker's price per share closed at $32.04 yesterday. A year ago its price was $21.87. Price per share soared $10.17 or about 46.5% this past year. 

If Hooker Furniture Corp stock trades in the range of $12 to $42 this next year, its recent $32.04 price might rise by $2.96 to reach $35.00 by February 19, 2022. That's well below the analyst expectation for 2022.

HOFT Dividends

Hooker's most recently declared quarterly dividend was $0.18 paid out on December 31st. Dividends are estimated to total $0.72 per share annually and yield 2.25% at yesterday's $32.04 closing price. 

Over the next year at this time, a $1000 investment would generate $22.50 in cash per share. And a single share bought at yesterday's closing price was over $32.00! So, if HOFT is your kind of company, wait for the price to drop closer to $20 to where the dividend income from $1,000 invested meets or exceeds the single share price. You then have a block of stocks to hold forever, no matter where the price rises or falls. 

HOFT Returns

Adding the $0.72 annual HOFT anticipated dividend to my $2.96 price upside shows a $3.68 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Hooker Furniture Corp at $32.04 per share and we'd buy 31 shares of HOFT stock.

A $10 broker fee (if charged) to be paid half at purchase and half at sale might cost us about $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated  $3.68 gross gain per share results in a net gain of $3.36 X 31 shares = $104.16 for a 10.5% net gain on a $993.24 investment.

Hooker Furniture Corp shows a possible 10.5% net gain including a 2.25% dividend yield. It could be more, it could be less. And wait to buy until the annual yield from $1000 invested is equal to or greater than the single share price (around $20.00 in this case).

All of the estimates above are speculation based on the past history of Hooker Furniture Corp. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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