Analysts Set Champion Homes, Inc. (NYSE:SKY) Price Target at $80.60

Key Points

• Champion Homes, Inc. has received an average recommendation of "Hold" from six analysts, with five holding and one giving a buy rating.
• The company reported a missed earnings estimate of $0.65 per share for the last quarter, falling short of the consensus expectation of $0.75.
• Champion Homes has announced a stock buyback plan of $50 million, indicating the board's belief that its shares are undervalued.

Champion Homes, Inc. (NYSE:SKY - Get Free Report) has been assigned a consensus rating of "Hold" from the five ratings firms that are presently covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $86.00.

A number of research firms have recently issued reports on SKY. Zelman & Associates upgraded Champion Homes from a "strong sell" rating to a "hold" rating in a report on Thursday, June 5th. Barclays upped their price objective on shares of Champion Homes from $72.00 to $74.00 and gave the company an "equal weight" rating in a research note on Thursday. Finally, Royal Bank Of Canada lifted their price objective on Champion Homes from $82.00 to $85.00 and gave the stock a "sector perform" rating in a research report on Thursday.

Institutional Investors Weigh In On Champion Homes

Several hedge funds have recently made changes to their positions in the company. LPL Financial LLC raised its holdings in Champion Homes by 11.6% in the fourth quarter. LPL Financial LLC now owns 3,685 shares of the company's stock worth $325,000 after purchasing an additional 384 shares in the last quarter. JPMorgan Chase & Co. lifted its position in Champion Homes by 120.3% during the 4th quarter. JPMorgan Chase & Co. now owns 280,396 shares of the company's stock valued at $24,703,000 after acquiring an additional 153,089 shares during the period. Pictet Asset Management Holding SA boosted its stake in Champion Homes by 21.1% during the fourth quarter. Pictet Asset Management Holding SA now owns 8,653 shares of the company's stock worth $762,000 after acquiring an additional 1,508 shares in the last quarter. Headlands Technologies LLC purchased a new stake in Champion Homes in the fourth quarter worth about $108,000. Finally, Wells Fargo & Company MN grew its holdings in Champion Homes by 6.1% in the fourth quarter. Wells Fargo & Company MN now owns 128,570 shares of the company's stock worth $11,327,000 after purchasing an additional 7,415 shares during the period.

Champion Homes Stock Performance

Shares of NYSE SKY traded down $1.59 during mid-day trading on Tuesday, hitting $65.92. The company had a trading volume of 178,584 shares, compared to its average volume of 637,930. Champion Homes has a 1 year low of $59.44 and a 1 year high of $116.49. The company has a market capitalization of $3.78 billion, a price-to-earnings ratio of 17.53 and a beta of 1.13. The company has a current ratio of 2.39, a quick ratio of 1.61 and a debt-to-equity ratio of 0.02. The stock's 50-day moving average price is $64.58 and its 200-day moving average price is $82.34.

Champion Homes (NYSE:SKY - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.88 by $0.31. Champion Homes had a return on equity of 14.35% and a net margin of 8.50%. The firm had revenue of $701.32 million during the quarter, compared to the consensus estimate of $642.18 million. During the same quarter last year, the company posted $0.91 EPS. The company's revenue for the quarter was up 11.7% on a year-over-year basis. On average, sell-side analysts forecast that Champion Homes will post 3.63 earnings per share for the current year.

Champion Homes declared that its board has approved a share buyback plan on Friday, May 30th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to buy up to 1.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

About Champion Homes

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada.