Champion Homes (NYSE:SKY) Shares Gap Down - Here's Why

Key Points

• Champion Homes shares gapped down before Monday’s trading, opening at $83.21 after closing at $86.02 and later trading around $81.81.
• Analyst sentiment remains mixed but broadly positive: Citigroup and UBS initiated buy ratings with $93 targets, while RBC trimmed its target to $92 and Zacks downgraded the stock to strong sell. The overall consensus remains Moderate Buy with an average price target of $95.
• The company recently beat quarterly earnings expectations, posting $0.68 EPS versus $0.63 expected and revenue of $621.28 million, up 15.2% year over year. Separately, EVP Joseph A. Kimmell sold 7,922 shares, reducing his ownership by about 18%.

Champion Homes, Inc. (NYSE:SKY - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $86.02, but opened at $83.21. Champion Homes shares last traded at $81.81, with a volume of 9,183 shares traded.

Analyst Ratings Changes

Several research firms have weighed in on SKY. Citigroup started coverage on shares of Champion Homes in a research note on Friday, June 5th. They issued a "buy" rating and a $93.00 price target for the company. Royal Bank Of Canada reduced their price objective on Champion Homes from $101.00 to $92.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Zacks Research downgraded Champion Homes from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 27th. UBS Group initiated coverage on Champion Homes in a research note on Friday, June 5th. They issued a "buy" rating and a $93.00 target price for the company. Finally, Weiss Ratings cut Champion Homes from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $95.00.

Champion Homes Trading Down 1.7%

The company has a debt-to-equity ratio of 0.01, a current ratio of 2.48 and a quick ratio of 1.69. The firm's 50 day moving average is $77.82 and its 200 day moving average is $81.72. The company has a market capitalization of $4.46 billion, a PE ratio of 22.27 and a beta of 1.00.

Champion Homes (NYSE:SKY - Get Free Report) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $0.68 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.05. The company had revenue of $621.28 million during the quarter, compared to analyst estimates of $607.39 million. Champion Homes had a net margin of 7.77% and a return on equity of 13.80%. The firm's revenue was up 15.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.65 EPS. As a group, equities analysts predict that Champion Homes, Inc. will post 3.4 EPS for the current year.

Insider Activity at Champion Homes

In other news, EVP Joseph A. Kimmell sold 7,922 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $75.70, for a total transaction of $599,695.40. Following the completion of the transaction, the executive vice president directly owned 36,118 shares of the company's stock, valued at approximately $2,734,132.60. This represents a 17.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.60% of the company's stock.

Institutional Trading of Champion Homes

Several large investors have recently modified their holdings of SKY. Los Angeles Capital Management LLC bought a new position in Champion Homes during the 4th quarter valued at approximately $26,000. UMB Bank n.a. lifted its holdings in Champion Homes by 78.9% in the 4th quarter. UMB Bank n.a. now owns 313 shares of the company's stock worth $26,000 after buying an additional 138 shares during the period. Kestra Advisory Services LLC bought a new stake in shares of Champion Homes in the 4th quarter worth approximately $26,000. Parallel Advisors LLC grew its position in shares of Champion Homes by 668.6% in the 1st quarter. Parallel Advisors LLC now owns 392 shares of the company's stock worth $29,000 after buying an additional 341 shares during the last quarter. Finally, Advisory Services Network LLC purchased a new position in shares of Champion Homes during the third quarter valued at approximately $35,000.

Champion Homes Company Profile

Champion Homes, traded under the NYSE ticker SKY, operates as a leading provider of factory-built housing solutions in North America. The company specializes in the design, manufacture and sale of manufactured and modular homes, serving a broad spectrum of customers from first-time homebuyers to those seeking upscale residential properties. Champion Homes leverages vertically integrated operations to streamline production, ensuring consistent quality and cost efficiencies across its product lines.

The company's product portfolio encompasses single- and multi-section modular homes, manufactured home models, park models and select commercial modular buildings.

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