Royal Bank Of Canada Forecasts Strong Price Appreciation for Champion Homes (NYSE:SKY) Stock

Key Points

• Champion Homes (NYSE:SKY) had its target price raised from $82.00 to $85.00 by Royal Bank Of Canada, indicating a potential upside of 24.65% from the previous close.
• The company reported earnings of $1.19 per share for the last quarter, surpassing estimates and showing an 11.7% increase in revenue year-over-year.
• Champion Homes recently initiated a $50 million share buyback program, which suggests that the leadership believes its shares are currently undervalued.

Champion Homes (NYSE:SKY - Free Report) had its price objective increased by Royal Bank Of Canada from $82.00 to $85.00 in a research note published on Thursday,Benzinga reports. Royal Bank Of Canada currently has a sector perform rating on the stock.

SKY has been the subject of a number of other research reports. Barclays lifted their price target on Champion Homes from $72.00 to $74.00 and gave the stock an "equal weight" rating in a report on Thursday. Zelman & Associates upgraded Champion Homes from a "strong sell" rating to a "hold" rating in a report on Thursday, June 5th. Four investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $86.00.

Champion Homes Stock Down 2.1%

Shares of SKY traded down $1.44 during midday trading on Thursday, hitting $66.06. The stock had a trading volume of 557,833 shares, compared to its average volume of 637,534. The company has a 50 day simple moving average of $64.60 and a two-hundred day simple moving average of $82.11. Champion Homes has a twelve month low of $59.44 and a twelve month high of $116.49. The firm has a market cap of $3.78 billion, a price-to-earnings ratio of 17.57 and a beta of 1.13. The company has a debt-to-equity ratio of 0.02, a current ratio of 2.39 and a quick ratio of 1.61.

Champion Homes (NYSE:SKY - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $642.18 million. During the same quarter last year, the business posted $0.91 EPS. The company's revenue for the quarter was up 11.7% on a year-over-year basis. On average, analysts anticipate that Champion Homes will post 3.63 EPS for the current year.

Champion Homes announced that its Board of Directors has initiated a share repurchase program on Friday, May 30th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the company to buy up to 1.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Champion Homes

A number of institutional investors have recently made changes to their positions in the company. SG Americas Securities LLC boosted its holdings in shares of Champion Homes by 262.1% during the second quarter. SG Americas Securities LLC now owns 7,217 shares of the company's stock worth $452,000 after acquiring an additional 5,224 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its holdings in shares of Champion Homes by 7.3% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 13,529 shares of the company's stock worth $847,000 after acquiring an additional 919 shares during the period. Police & Firemen s Retirement System of New Jersey boosted its holdings in shares of Champion Homes by 3.6% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 12,112 shares of the company's stock worth $758,000 after acquiring an additional 419 shares during the period. PFG Advisors boosted its holdings in shares of Champion Homes by 8.9% during the second quarter. PFG Advisors now owns 6,916 shares of the company's stock worth $433,000 after acquiring an additional 564 shares during the period. Finally, Campbell & CO Investment Adviser LLC acquired a new stake in shares of Champion Homes in the second quarter valued at approximately $1,255,000.

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.