Champion Homes (NYSE:SKY) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised Champion Homes’ price target from $94 to $99 and maintained an “outperform” rating, implying 6.43% upside from the prior close.
• Analyst sentiment is broadly positive: the consensus rating is “Moderate Buy,” with an average price target of $104.25.
• Champion Homes reported quarterly EPS of $0.95, slightly beating estimates, while revenue of $727.03 million also topped expectations and rose 6.2% year over year.

Champion Homes (NYSE:SKY - Get Free Report) had its price target lifted by research analysts at Royal Bank Of Canada from $94.00 to $99.00 in a report released on Thursday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target would indicate a potential upside of 6.43% from the company's previous close.

A number of other equities research analysts have also recently commented on SKY. Weiss Ratings upgraded Champion Homes from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 7th. Barclays lifted their price objective on Champion Homes from $109.00 to $110.00 and gave the stock an "overweight" rating in a report on Thursday. UBS Group lifted their price objective on shares of Champion Homes from $93.00 to $115.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Zelman & Associates upgraded Champion Homes from a "hold" rating to an "outperform" rating in a research report on Thursday, August 6th. Finally, Zacks Research upgraded shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $104.25.

Champion Homes Stock Performance

Shares of Champion Homes stock traded down $3.15 on Thursday, reaching $93.02. 430,591 shares of the stock were exchanged, compared to its average volume of 689,309. Champion Homes has a 1-year low of $63.87 and a 1-year high of $99.17. The company has a current ratio of 2.74, a quick ratio of 1.97 and a debt-to-equity ratio of 0.01. The business has a fifty day moving average price of $83.93 and a two-hundred day moving average price of $82.47. The firm has a market capitalization of $5.05 billion, a PE ratio of 27.59 and a beta of 1.03.

Champion Homes (NYSE:SKY - Get Free Report) last released its earnings results on Tuesday, November 3rd. The company reported $0.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.01. The company had revenue of $727.03 million for the quarter, compared to analysts' expectations of $719.71 million. Champion Homes had a return on equity of 12.17% and a net margin of 6.84%. The firm's quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.03 EPS. As a group, research analysts anticipate that Champion Homes will post 3.40 earnings per share for the current fiscal year.

Insider Activity at Champion Homes

In other news, Director Michael B. Berman sold 1,500 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $93.22, for a total transaction of $139,830.00. Following the transaction, the director owned 6,825 shares of the company's stock, valued at approximately $636,226.50. This represents a 18.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Erin Helgren sold 1,100 shares of Champion Homes stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $95.00, for a total transaction of $104,500.00. Following the completion of the transaction, the director directly owned 8,196 shares in the company, valued at approximately $778,620. This represents a 11.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Hsbc Holdings PLC bought a new position in Champion Homes in the second quarter valued at approximately $1,142,000. Militia Capital Management LLC bought a new stake in shares of Champion Homes during the 1st quarter worth approximately $1,398,000. William Blair Investment Management LLC acquired a new stake in shares of Champion Homes in the 2nd quarter valued at approximately $35,030,000. Castleark Management LLC acquired a new stake in shares of Champion Homes in the 2nd quarter valued at approximately $4,024,000. Finally, Bank of America Corp DE acquired a new position in Champion Homes during the second quarter worth $52,406,000.

About Champion Homes

Champion Homes, Inc NYSE: SKY is a manufacturer of factory-built housing in the United States and Canada. The company designs and produces manufactured homes, modular homes and other residential structures in controlled factory environments, offering housing solutions for individual homeowners, developers, retailers and communities.

Its products include single-section and multi-section manufactured homes, modular homes, accessory dwelling units and park model recreational vehicles. Champion Homes markets its products through independent retailers, company-owned retail operations and other distribution channels, and also provides related construction and installation services in selected markets.

The company traces its heritage to the Skyline and Champion businesses, which combined in 2018 to form Skyline Champion Corporation.

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