Harley-Davidson (HOG) Rating Increased to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Harley-Davidson (NYSE:HOG) from a sell rating to a hold rating in a research report sent to investors on Tuesday.
According to Zacks, “Harley-Davidson is making long-term investments to expand its product portfolio. In March, the company announced that it has invested in Alta Motors. Additionally, both the two companies will team up to develop electric motorcycle technology and will focus on product developments. This development is in sync with Harley-Davidson’s plan to launch electric motorcycles by 2019. Also, in the last three months, shares of the company have outperformed the industry it belongs to. Further, it is working towards improving its international reach and anticipates an increase of 50% of yearly volume by 2027. However, declining worldwide sales, waning operating margin are concerns before the company. Moreover, it has provided a weak guidance for fiscal 2018.”
Several other research firms also recently commented on HOG. Longbow Research downgraded Harley-Davidson from a neutral rating to an underperform rating in a report on Wednesday, January 3rd. Goldman Sachs downgraded Harley-Davidson to a hold rating and set a $43.00 price objective for the company. in a report on Wednesday, January 3rd. Wedbush decreased their price objective on Harley-Davidson to $49.00 and set a neutral rating for the company in a report on Wednesday, January 10th. Stifel Nicolaus restated a hold rating and set a $54.00 price objective (up previously from $49.00) on shares of Harley-Davidson in a report on Wednesday, January 17th. Finally, Wells Fargo upgraded Harley-Davidson from a market perform rating to an outperform rating and set a $59.00 price objective for the company in a report on Monday, January 22nd. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating and six have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus target price of $50.75.
Harley-Davidson (NYSE:HOG) last issued its earnings results on Tuesday, April 24th. The company reported $1.24 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.08 by $0.16. The business had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.24 billion. Harley-Davidson had a return on equity of 32.45% and a net margin of 10.31%. The firm’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the previous year, the company posted $1.05 earnings per share. research analysts anticipate that Harley-Davidson will post 3.85 earnings per share for the current year.
Harley-Davidson announced that its Board of Directors has initiated a stock buyback program on Monday, February 5th that authorizes the company to buyback 15,000,000 shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.
In related news, VP Paul J. Jones sold 870 shares of the company’s stock in a transaction on Monday, February 5th. The stock was sold at an average price of $47.62, for a total transaction of $41,429.40. Following the completion of the sale, the vice president now owns 3,399 shares in the company, valued at $161,860.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Tchernavia Rocker sold 1,401 shares of the company’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $47.74, for a total value of $66,883.74. The disclosure for this sale can be found here. Corporate insiders own 0.58% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. IFG Advisory LLC bought a new stake in Harley-Davidson during the fourth quarter worth $239,000. Dynamic Capital Management Ltd bought a new stake in Harley-Davidson during the fourth quarter worth $255,000. Sciencast Management LP bought a new stake in Harley-Davidson during the fourth quarter worth $266,000. First Allied Advisory Services Inc. bought a new stake in Harley-Davidson during the fourth quarter worth $313,000. Finally, Meag Munich Ergo Kapitalanlagegesellschaft MBH bought a new stake in Harley-Davidson during the fourth quarter worth $424,000. Institutional investors and hedge funds own 95.87% of the company’s stock.
Harley-Davidson, Inc primarily manufactures and sells cruiser and touring motorcycles. The company operates in two segments, Motorcycles & Related Products, and Financial Services. The Motorcycles & Related Products segment designs, manufactures, and sells at wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise, and related services.
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