Champion Homes (NYSE:SKY) Trading Down 6.7% - Here's Why

Key Points

• Champion Homes' stock (NYSE: SKY) saw a significant drop of 6.7% in trading on Monday, with shares falling from a previous close of $76.35 to $71.22, alongside a 61% decline in trading volume.
• Analysts have set updated price targets for Champion Homes, with Royal Bank of Canada increasing its target from $82.00 to $85.00, while Barclays raised their target from $72.00 to $74.00, reflecting a generally cautious outlook.
• The company reported strong earnings, with **$1.19 earnings per share (EPS)** for the quarter, exceeding analyst expectations, and a revenue increase of **11.7% year-over-year** to $701.32 million.

Champion Homes, Inc. (NYSE:SKY - Get Free Report)'s share price was down 6.7% during trading on Monday . The stock traded as low as $72.41 and last traded at $71.22. Approximately 256,527 shares were traded during mid-day trading, a decline of 61% from the average daily volume of 654,070 shares. The stock had previously closed at $76.35.

Analysts Set New Price Targets

A number of equities research analysts recently commented on SKY shares. Royal Bank Of Canada boosted their target price on Champion Homes from $82.00 to $85.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 7th. Barclays upped their target price on Champion Homes from $72.00 to $74.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Champion Homes in a research note on Saturday, September 27th. One analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $86.00.

Champion Homes Price Performance

The company has a market cap of $3.93 billion, a PE ratio of 18.48 and a beta of 1.16. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.59 and a current ratio of 2.39. The stock has a 50 day moving average of $72.90 and a 200-day moving average of $75.41.

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

Insiders Place Their Bets

In other news, EVP Joseph A. Kimmell sold 1,000 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $65.24, for a total transaction of $65,240.00. Following the sale, the executive vice president directly owned 43,568 shares in the company, valued at $2,842,376.32. This trade represents a 2.24% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On Champion Homes

Institutional investors have recently modified their holdings of the business. GAMMA Investing LLC lifted its stake in Champion Homes by 38,372.4% in the 1st quarter. GAMMA Investing LLC now owns 96,181 shares of the company's stock valued at $9,114,000 after buying an additional 95,931 shares in the last quarter. Portside Wealth Group LLC grew its stake in shares of Champion Homes by 8.6% in the first quarter. Portside Wealth Group LLC now owns 3,873 shares of the company's stock worth $367,000 after acquiring an additional 306 shares in the last quarter. Handelsbanken Fonder AB lifted its position in Champion Homes by 27.6% in the first quarter. Handelsbanken Fonder AB now owns 19,400 shares of the company's stock valued at $1,838,000 after acquiring an additional 4,200 shares during the last quarter. Fort Washington Investment Advisors Inc. OH lifted its position in Champion Homes by 11.2% in the first quarter. Fort Washington Investment Advisors Inc. OH now owns 213,944 shares of the company's stock valued at $20,273,000 after acquiring an additional 21,480 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. raised its holdings in shares of Champion Homes by 16.4% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 473,940 shares of the company's stock valued at $44,909,000 after buying an additional 66,835 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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