Champion Homes (NYSE:SKY) Shares Up 6.9% - Here's What Happened

Key Points

• Champion Homes (NYSE:SKY) saw a stock price increase of 6.9%, trading at $65.09 on Friday, up from a previous close of $60.90.
• Research firms have downgraded the company's price target, with Royal Bank of Canada lowering it to $82.00 and Barclays to $72.00, while the consensus rating remains a "Hold."
• The company initiated a $50 million stock buyback plan, indicating management's belief that its shares are currently undervalued.

Champion Homes, Inc. (NYSE:SKY - Get Free Report)'s stock price shot up 6.9% during trading on Friday . The company traded as high as $64.62 and last traded at $65.09. 839,139 shares traded hands during mid-day trading, an increase of 33% from the average session volume of 631,837 shares. The stock had previously closed at $60.90.

Wall Street Analysts Forecast Growth

A number of research firms have commented on SKY. Royal Bank Of Canada reduced their price target on shares of Champion Homes from $96.00 to $82.00 and set a "sector perform" rating on the stock in a research report on Wednesday, May 28th. Barclays reduced their price target on shares of Champion Homes from $97.00 to $72.00 and set an "equal weight" rating on the stock in a research report on Wednesday, May 28th. Finally, Zelman & Associates upgraded shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 5th. Six investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $80.60.

Champion Homes Stock Performance

The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.61 and a current ratio of 2.41. The stock's fifty day moving average price is $65.30 and its 200-day moving average price is $83.19. The company has a market capitalization of $3.72 billion, a P/E ratio of 18.97 and a beta of 1.16.

Champion Homes (NYSE:SKY - Get Free Report) last released its quarterly earnings results on Tuesday, May 27th. The company reported $0.65 EPS for the quarter, missing analysts' consensus estimates of $0.75 by ($0.10). Champion Homes had a return on equity of 13.61% and a net margin of 7.99%. The business had revenue of $593.87 million for the quarter, compared to the consensus estimate of $595.42 million. During the same period in the prior year, the business posted $0.62 earnings per share. Champion Homes's revenue was up .7% compared to the same quarter last year. As a group, research analysts anticipate that Champion Homes, Inc. will post 3.63 EPS for the current fiscal year.

Champion Homes announced that its Board of Directors has initiated a stock repurchase plan on Friday, May 30th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 1.3% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Champion Homes

Several hedge funds and other institutional investors have recently made changes to their positions in SKY. Kovitz Investment Group Partners LLC boosted its position in Champion Homes by 2.7% during the 1st quarter. Kovitz Investment Group Partners LLC now owns 5,514 shares of the company's stock worth $523,000 after buying an additional 145 shares during the period. Envestnet Portfolio Solutions Inc. raised its holdings in Champion Homes by 5.4% during the first quarter. Envestnet Portfolio Solutions Inc. now owns 3,336 shares of the company's stock worth $316,000 after buying an additional 172 shares during the last quarter. Summit Investment Advisors Inc. raised its holdings in Champion Homes by 3.3% during the fourth quarter. Summit Investment Advisors Inc. now owns 5,613 shares of the company's stock worth $495,000 after buying an additional 178 shares during the last quarter. Xponance Inc. raised its holdings in shares of Champion Homes by 5.0% in the first quarter. Xponance Inc. now owns 4,048 shares of the company's stock valued at $384,000 after purchasing an additional 193 shares during the last quarter. Finally, Two Sigma Advisers LP raised its holdings in shares of Champion Homes by 3.6% in the fourth quarter. Two Sigma Advisers LP now owns 5,800 shares of the company's stock valued at $511,000 after purchasing an additional 200 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.

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