B. Riley Securities Maintains Buy on Envela, Raises Price Target to $11

Real-time Intelligence: Benzinga Pro offers fast and accurate stock market intelligence to help traders make informed decisions.

Exclusive Stories: The platform provides exclusive news stories generated by Benzinga reporters, enhancing the trading experience for its users.

Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, sharing insights and strategies.

Trade Alerts: Users can receive the fastest news alerts to stay updated on market movements and opportunities.

Fastest News Alerts: Benzinga Pro offers real-time intelligence and news alerts to help traders stay informed and make winning trades in the stock market.

Exclusive Community Access: Joining Benzinga Pro connects users with over 10,000 serious traders and provides access to exclusive stories and insights from Benzinga reporters.

Financial Performance: Envela reported Q4 revenue of $48.32 million, exceeding the consensus estimate of $40.63 million, and achieved a record net cash position of $7.1 million for fiscal year 2024, highlighting strong operating cash flow and disciplined capital management.

Growth Initiatives: The company celebrated its 60th anniversary with significant growth in its commercial segment, reaching an all-time high adjusted EBITDA of $9.0 million, and expanded its consumer presence by opening five new stores, contributing to a 6.4% increase in gross margin.

Envela Corporation Earnings Report: Envela Corporation reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.03 and showing a revenue of $46.9 million, surpassing estimates by 17.69%. The company has consistently outperformed consensus EPS and revenue estimates over the last four quarters.

Market Outlook and Industry Performance: Despite a 10.5% increase in shares this year, Envela's stock is expected to perform in line with the market due to mixed earnings estimate revisions, holding a Zacks Rank #3 (Hold). The Retail - Jewelry industry is currently ranked in the bottom 12% of Zacks industries, which may impact future performance.

Financial Performance: Envela Corporation reported second-quarter revenue of $45.3 million, a decrease from the previous year, but achieved a gross margin improvement to 25.1%. The Commercial Division saw a revenue increase of 16.2%, while the Consumer Division experienced a 19.3% decline due to reduced demand for bullion and new store costs.

Strategic Developments: The company is expanding its retail presence with new store launches focused on authenticated luxury goods and enhancing customer engagement through innovative services like Bijoux Exchange. Management emphasized their commitment to operational discipline and sustainability in both divisions.

Russell 3000 Index Reconstitution:

• 225 securities will be added and 144 securities will be deleted on June 28.
• Annual reconstitution will change the index's composition.

Consumer Discretionary Stocks Changes:

• Notable additions include Canoo, GigaCloud Technology, Dutch Bros, The RealReal, and Despegar.com.
• Notable deletions include ContextLogic, Vuzix, WW International, 2U, and Big Lots.