Camping World (NYSE:CWH) Shares Down 11.6% Following Weak Earnings

Key Points

• Camping World's stock price fell 11.6% after the company reported weaker-than-expected quarterly earnings, missing the EPS consensus estimate by $0.01.
• The company declared a quarterly dividend of $0.125, representing a dividend yield of 3.22%, despite a negative dividend payout ratio of -108.70%.
• Analysts have mixed opinions on the stock, with the average rating being "Moderate Buy" and a consensus price target of $22.44.

Camping World (NYSE:CWH - Get Free Report)'s share price traded down 11.6% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $15.12 and last traded at $15.60. 1,227,394 shares traded hands during trading, a decline of 43% from the average session volume of 2,154,743 shares. The stock had previously closed at $17.64.

The company reported $0.57 earnings per share for the quarter, missing analysts' consensus estimates of $0.58 by ($0.01). Camping World had a negative return on equity of 2.81% and a negative net margin of 0.13%. The business had revenue of $1.98 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same period in the previous year, the firm posted $0.38 earnings per share. The firm's revenue was up 9.4% compared to the same quarter last year.

Camping World Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 27th. Shareholders of record on Friday, June 13th were issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend was Friday, June 13th. Camping World's dividend payout ratio is currently -250.00%.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. KeyCorp reaffirmed an "overweight" rating and issued a $18.00 price objective (up from $16.00) on shares of Camping World in a report on Friday, May 23rd. Raymond James Financial decreased their price objective on Camping World from $20.00 to $18.00 and set an "outperform" rating on the stock in a report on Thursday. Citigroup reaffirmed a "buy" rating and issued a $23.00 price objective (up from $21.00) on shares of Camping World in a report on Monday, June 16th. JPMorgan Chase & Co. raised Camping World from a "neutral" rating to an "overweight" rating and decreased their price objective for the company from $23.00 to $21.00 in a report on Thursday, May 1st. Finally, Truist Financial increased their target price on Camping World from $16.00 to $20.00 and gave the stock a "buy" rating in a report on Tuesday, June 3rd. Three investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $21.44.

Institutional Trading of Camping World

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its position in Camping World by 39.2% in the fourth quarter. Vanguard Group Inc. now owns 5,787,609 shares of the company's stock valued at $122,003,000 after purchasing an additional 1,630,307 shares during the last quarter. GAMMA Investing LLC raised its position in Camping World by 6,485.8% in the first quarter. GAMMA Investing LLC now owns 15,740 shares of the company's stock valued at $254,000 after purchasing an additional 15,501 shares during the last quarter. Interval Partners LP raised its position in Camping World by 71.8% in the fourth quarter. Interval Partners LP now owns 2,875,845 shares of the company's stock valued at $60,623,000 after purchasing an additional 1,202,258 shares during the last quarter. Russell Investments Group Ltd. raised its position in Camping World by 85.1% in the fourth quarter. Russell Investments Group Ltd. now owns 85,683 shares of the company's stock valued at $1,806,000 after purchasing an additional 39,383 shares during the last quarter. Finally, American Century Companies Inc. raised its position in Camping World by 20.3% in the fourth quarter. American Century Companies Inc. now owns 91,342 shares of the company's stock valued at $1,925,000 after purchasing an additional 15,383 shares during the last quarter. 52.54% of the stock is currently owned by institutional investors.

Camping World Stock Up 0.5%

The company has a debt-to-equity ratio of 3.12, a current ratio of 1.26 and a quick ratio of 0.24. The stock has a market capitalization of $1.42 billion, a P/E ratio of -69.55 and a beta of 1.76. The firm has a 50-day simple moving average of $17.69 and a 200 day simple moving average of $17.59.

About Camping World

Camping World Holdings, Inc, together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry.