Champion Homes (NYSE:SKY) Stock Price Up 4.2% - Still a Buy?

Key Points

• Champion Homes' stock price increased by 4.2%, reaching $73.79, despite a 20% decline in trading volume compared to its average.
• Analysts have varying ratings on the stock, with one Buy rating, four Hold ratings, and one Sell rating, and a consensus price target of $86.00.
• The company reported an earnings per share (EPS) of $1.19 for the last quarter, significantly exceeding estimates, with revenue of $701.32 million reflecting an 11.7% year-over-year growth.

Champion Homes, Inc. (NYSE:SKY - Get Free Report)'s stock price rose 4.2% during mid-day trading on Friday . The stock traded as high as $73.53 and last traded at $73.79. Approximately 532,982 shares were traded during trading, a decline of 20% from the average daily volume of 663,015 shares. The stock had previously closed at $70.84.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Zacks Research cut Champion Homes from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Champion Homes in a research note on Wednesday, October 8th. Royal Bank Of Canada raised their price objective on Champion Homes from $82.00 to $85.00 and gave the company a "sector perform" rating in a research note on Thursday, August 7th. Finally, Barclays lifted their price objective on Champion Homes from $72.00 to $74.00 and gave the company an "equal weight" rating in a research report on Thursday, August 7th. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $86.00.

Champion Homes Price Performance

The company has a quick ratio of 1.59, a current ratio of 2.39 and a debt-to-equity ratio of 0.02. The firm has a market capitalization of $4.22 billion, a price-to-earnings ratio of 19.88 and a beta of 1.16. The stock's 50 day moving average price is $73.35 and its two-hundred day moving average price is $73.92.

Champion Homes (NYSE:SKY - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $1.19 EPS for the quarter, topping the consensus estimate of $0.88 by $0.31. The firm had revenue of $701.32 million for the quarter, compared to the consensus estimate of $642.18 million. Champion Homes had a net margin of 8.50% and a return on equity of 14.35%. The business's quarterly revenue was up 11.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.91 earnings per share. Analysts anticipate that Champion Homes, Inc. will post 3.63 EPS for the current fiscal year.

Insider Activity

In related news, EVP Joseph A. Kimmell sold 1,000 shares of the stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $65.24, for a total value of $65,240.00. Following the completion of the sale, the executive vice president owned 43,568 shares in the company, valued at approximately $2,842,376.32. This trade represents a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Champion Homes

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC lifted its position in Champion Homes by 306.0% during the 1st quarter. GAMMA Investing LLC now owns 1,015 shares of the company's stock worth $96,000 after buying an additional 765 shares in the last quarter. Oppenheimer & Co. Inc. lifted its stake in Champion Homes by 142.2% in the 1st quarter. Oppenheimer & Co. Inc. now owns 7,394 shares of the company's stock valued at $701,000 after purchasing an additional 4,341 shares during the last quarter. Principal Financial Group Inc. raised its stake in shares of Champion Homes by 2.3% during the first quarter. Principal Financial Group Inc. now owns 262,811 shares of the company's stock valued at $24,904,000 after acquiring an additional 5,887 shares during the last quarter. New York State Teachers Retirement System raised its stake in shares of Champion Homes by 3.4% during the first quarter. New York State Teachers Retirement System now owns 12,300 shares of the company's stock valued at $1,166,000 after acquiring an additional 400 shares during the last quarter. Finally, Bessemer Group Inc. increased its stake in Champion Homes by 4.3% in the first quarter. Bessemer Group Inc. now owns 244,149 shares of the company's stock valued at $23,136,000 after purchasing an additional 10,107 shares in the last quarter.

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.

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