Royal Bank Of Canada Issues Pessimistic Forecast for Champion Homes (NYSE:SKY) Stock Price

Key Points

• Royal Bank of Canada cut Champion Homes’ price target from $99 to $94 but maintained its “outperform” rating, implying roughly 18.5% upside from the stock’s $79.34 price.
• Analyst sentiment remains favorable overall: Champion Homes has a “Moderate Buy” consensus rating and an average price target of $102.75, supported by recent upgrades from Zelman and Barclays.
• The company slightly exceeded quarterly expectations, reporting $0.88 in adjusted earnings per share and $710.23 million in revenue, while revenue grew 1.3% year over year; however, two directors recently sold shares.

Champion Homes (NYSE:SKY - Get Free Report) had its price objective cut by equities researchers at Royal Bank Of Canada from $99.00 to $94.00 in a research report issued on Thursday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target indicates a potential upside of 18.47% from the stock's current price.

A number of other analysts have also recently weighed in on SKY. Zelman & Associates upgraded shares of Champion Homes from a "hold" rating to an "outperform" rating in a report on Thursday, August 6th. Zacks Research raised Champion Homes from a "strong sell" rating to a "hold" rating in a research note on Monday, July 27th. Weiss Ratings upgraded Champion Homes from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 7th. Oppenheimer began coverage on shares of Champion Homes in a research note on Wednesday, September 30th. They set a "market perform" rating for the company. Finally, Barclays upped their price objective on shares of Champion Homes from $102.00 to $109.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, Champion Homes has an average rating of "Moderate Buy" and an average price target of $102.75.

Champion Homes Stock Performance

Shares of NYSE SKY traded up $3.44 during midday trading on Thursday, hitting $79.34. 288,073 shares of the company's stock were exchanged, compared to its average volume of 682,351. The firm has a market cap of $4.31 billion, a P/E ratio of 23.07 and a beta of 1.02. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.74 and a quick ratio of 1.97. Champion Homes has a twelve month low of $63.87 and a twelve month high of $99.17. The stock's 50 day moving average price is $87.26 and its 200-day moving average price is $81.38.

Champion Homes (NYSE:SKY - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.88 earnings per share for the quarter, beating analysts' consensus estimates of $0.87 by $0.01. Champion Homes had a net margin of 7.16% and a return on equity of 12.52%. The business had revenue of $710.23 million for the quarter, compared to analysts' expectations of $701.98 million. During the same period in the previous year, the business earned $1.19 earnings per share. The company's revenue was up 1.3% on a year-over-year basis. Equities research analysts anticipate that Champion Homes will post 3.40 EPS for the current year.

Insider Activity

In other Champion Homes news, Director Erin Helgren sold 1,100 shares of Champion Homes stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $95.00, for a total transaction of $104,500.00. Following the sale, the director directly owned 8,196 shares of the company's stock, valued at approximately $778,620. The trade was a 11.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Michael 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 sale, the director owned 6,825 shares of the company's stock, valued at $636,226.50. This trade represents a 18.02% decrease in their position. The SEC filing for this sale provides additional information. 0.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Champion Homes

Several large investors have recently made changes to their positions in the company. Hsbc Holdings PLC acquired a new stake in shares of Champion Homes in the 2nd quarter valued at approximately $1,142,000. Militia Capital Management LLC bought a new stake in Champion Homes in the 1st quarter valued at $1,398,000. William Blair Investment Management LLC acquired a new position in shares of Champion Homes during the second quarter worth about $35,030,000. Bank of America Corp DE bought a new position in shares of Champion Homes during the 2nd quarter worth approximately $52,406,000. Finally, BlackRock Inc. bought a new position in Champion Homes in the second quarter valued at $794,354,000.

Champion Homes Company Profile

Champion Homes, Inc NYSE: SKY is a manufacturer of factory-built housing in North America. The company designs and produces manufactured and modular homes, along with park model recreational vehicles and other off-site construction products. Its homes are sold through independent and company-owned retailers, developers, and other housing channels.

The company's products serve a range of residential needs, including affordable single-family housing, workforce housing, multifamily developments, accessory dwelling units, and disaster-recovery housing.

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