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

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 target raised by Royal Bank Of Canada from $82.00 to $85.00 in a report published on Thursday,Benzinga reports. They currently have a sector perform rating on the stock.

Other equities analysts also recently issued research reports about the stock. Barclays lifted their target price on shares of Champion Homes from $72.00 to $74.00 and gave the stock an "equal weight" rating in a research note on Thursday. Zelman & Associates upgraded shares of Champion Homes from a "strong sell" rating to a "hold" rating in a report on Thursday, June 5th. Four analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, Champion Homes currently has an average rating of "Hold" and a consensus target price of $86.00.

Champion Homes Trading Up 0.2%

Shares of NYSE:SKY traded up $0.11 during mid-day trading on Thursday, reaching $66.01. 593,302 shares of the company's stock were exchanged, compared to its average volume of 640,274. Champion Homes has a twelve month low of $59.44 and a twelve month high of $116.49. The business's fifty day moving average price is $64.60 and its 200-day moving average price is $82.06. The firm has a market capitalization of $3.78 billion, a price-to-earnings ratio of 17.56 and a beta of 1.13. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.59 and a current ratio of 2.39.

Champion Homes (NYSE:SKY - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $1.19 earnings per share for the quarter, topping analysts' consensus estimates of $0.88 by $0.31. Champion Homes had a net margin of 8.50% and a return on equity of 14.35%. The business 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 firm earned $0.91 earnings per share. Champion Homes's quarterly revenue was up 11.7% on a year-over-year basis. On average, research analysts predict that Champion Homes will post 3.63 EPS for the current fiscal year.

Champion Homes declared that its board has authorized a stock repurchase program on Friday, May 30th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 1.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SKY. Caitong International Asset Management Co. Ltd boosted its holdings in Champion Homes by 10,171.4% during the second quarter. Caitong International Asset Management Co. Ltd now owns 719 shares of the company's stock worth $45,000 after purchasing an additional 712 shares during the last quarter. Byrne Asset Management LLC purchased a new position in Champion Homes in the second quarter valued at about $48,000. Blue Trust Inc. boosted its stake in Champion Homes by 49.8% in the second quarter. Blue Trust Inc. now owns 900 shares of the company's stock valued at $56,000 after acquiring an additional 299 shares during the last quarter. Sterling Capital Management LLC boosted its stake in Champion Homes by 645.5% in the fourth quarter. Sterling Capital Management LLC now owns 917 shares of the company's stock valued at $81,000 after acquiring an additional 794 shares during the last quarter. Finally, AlphaQuest LLC boosted its stake in Champion Homes by 1,231.3% in the first quarter. AlphaQuest LLC now owns 852 shares of the company's stock valued at $81,000 after acquiring an additional 788 shares during the last quarter.

Champion Homes Company Profile

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.