Haverty Furniture Shares: A Potential Turning Point?

A significant shift in sentiment is emerging around Haverty Furniture, sparked by a notable upgrade from Zacks Research. The firm has lifted its rating from "Strong Sell" to "Hold," a move that coincides with the company's release of impressive quarterly earnings and a dividend increase. This raises a pivotal question for investors: are these positive developments substantial enough to counteract prevailing downward pressures?

The financial results for the third quarter of 2025 served as the primary catalyst for the renewed analyst interest. The company delivered a performance that surpassed market expectations across key metrics:

• Earnings per share (EPS) reached $0.28, exceeding forecasts by $0.04.
• Revenue climbed to $194.48 million, a significant beat on projections.
• Comparable-store sales grew by a robust 7.1%, a notable achievement given the challenging housing market.
• Operational strength was further demonstrated as operating cash flow improved substantially, jumping from $24.5 million to $31.9 million.

This robust operational and financial health indicates that Haverty Furniture is successfully navigating current economic headwinds.

Should investors sell immediately? Or is it worth buying Haverty Furniture?

Analyst Sentiment Begins to Shift

The upgrade from Zacks signals a clear reassessment of the company's outlook. While the overall consensus rating on MarketBeat remains at "Hold," the first "Strong Buy" recommendations have now appeared. These revised ratings are not occurring in a vacuum; they are a direct response to the concrete financial data that has seemingly convinced previously skeptical market observers.

Dividend Hike Contrasts with Insider Selling Activity

In a show of confidence in its financial stability, Haverty Furniture announced an increase to its quarterly dividend, raising it from $0.32 to $0.33 per share. This action secures an annualized payout of $1.32, yielding approximately 5.5%. However, this positive signal is tempered by recent insider transactions. Director Rawson Haverty Jr. divested 4,523 shares on November 19th at a price of $22.42. Over the preceding 90 days, a total of 29,523 insider shares, valued at $677,706, were sold.

Technical Outlook Remains Cautious

Despite the positive fundamental news, technical indicators continue to flash warning signals. With the stock trading at $24.15 and a market capitalization of $393.4 million, chart analysis points to potential weakness. Sell signals are being generated from both the pivot top point identified on November 25th and the 3-month MACD indicator. The central challenge for the stock is whether its underlying fundamental strengths possess enough momentum to overcome this persistent technical downward pressure.