Champion Homes, Inc. (SKY) - What Are Analysts Saying About This Stock?

Key Points

• Analysts rate Champion Homes a “Moderate Buy”: Of nine analysts, five recommend buying, one strongly recommends buying, and three recommend holding; the average 12-month price target is $104.25.
• Quarterly results beat estimates: EPS was $0.95 versus $0.94 expected, while revenue reached $727 million, up 6.2% year over year. Manufacturing orders increased 17% year over year.
• Growth came with some headwinds: EPS was below the year-ago $1.03, and reported cost pressures are squeezing margins despite higher sales and earnings that topped estimates.

Shares of Champion Homes, Inc. (NYSE:SKY - Get Free Report) have been given a consensus rating of "Moderate Buy" by the nine analysts that are presently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation, five have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among analysts that have covered the stock in the last year is $104.25.

A number of brokerages have recently commented on SKY. Oppenheimer started coverage on Champion Homes in a research note on Wednesday, September 30th. They set a "market perform" rating on the stock. Weiss Ratings upgraded shares of Champion Homes from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 7th. Zacks Research raised shares of Champion Homes from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Zelman & Associates upgraded shares of Champion Homes from a "hold" rating to an "outperform" rating in a research report on Thursday, August 6th. Finally, Barclays lifted their price target on shares of Champion Homes from $109.00 to $110.00 and gave the stock an "overweight" rating in a report on Thursday.

Insider Transactions at Champion Homes

In other Champion Homes news, Director Michael Berman sold 1,500 shares of Champion Homes stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $93.22, for a total transaction of $139,830.00. Following the transaction, the director directly owned 6,825 shares of the company's stock, valued at approximately $636,226.50. The trade was a 18.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SKY. BlackRock Inc. purchased a new stake in shares of Champion Homes during the 2nd quarter valued at $794,354,000. Bank of America Corp DE purchased a new position in shares of Champion Homes in the 2nd quarter worth about $52,406,000. Neumeier Poma Investment Counsel LLC purchased a new position in shares of Champion Homes in the 2nd quarter worth about $51,446,747. William Blair Investment Management LLC purchased a new position in shares of Champion Homes in the 2nd quarter worth about $35,030,000. Finally, Bank of New York Mellon Corp bought a new position in Champion Homes during the second quarter valued at about $29,094,000.

Key Stories Impacting Champion Homes

Here are the key news stories impacting Champion Homes this week:

• Positive Sentiment: Quarterly EPS of $0.95 topped estimates, while revenue of $727 million exceeded expectations and grew 6.2% year over year. Zacks earnings report
• Positive Sentiment: Manufacturing orders rose 17% year over year, and captive retail accounted for 39% of second-quarter sales, pointing to activity across the business. The Motley Fool article
• Positive Sentiment: RBC raised its price target to $99 from $94 and maintained an Outperform rating; Barclays lifted its target to $110 from $109 and kept an Overweight rating. These revisions signal continued analyst optimism. RBC price target update
• Negative Sentiment: Despite the sales growth and earnings beat, EPS was down from $1.01 a year earlier, and coverage of the earnings call highlighted cost pressures squeezing margins. That may temper the positive results and analyst outlook. 247WallSt earnings analysis

Champion Homes Price Performance

SKY stock opened at $93.06 on Friday. The stock has a market cap of $5.05 billion, a price-to-earnings ratio of 27.61 and a beta of 1.03. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.75 and a quick ratio of 1.97. The company has a 50 day simple moving average of $83.97 and a 200 day simple moving average of $82.45. Champion Homes has a 1 year low of $63.87 and a 1 year high of $99.17.

Champion Homes (NYSE:SKY - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The company reported $0.95 earnings per share for the quarter, topping analysts' consensus estimates of $0.94 by $0.01. Champion Homes had a net margin of 6.84% and a return on equity of 12.17%. The firm had revenue of $727.03 million for the quarter, compared to analysts' expectations of $719.71 million. During the same quarter in the previous year, the firm posted $1.03 earnings per share. The company's revenue was up 6.2% on a year-over-year basis. Research analysts anticipate that Champion Homes will post 3.40 EPS for the current fiscal year.

About Champion Homes

Champion Homes, Inc NYSE: SKY is a manufacturer of factory-built housing in the United States and Canada. The company designs and produces manufactured homes, modular homes and other residential structures in controlled factory environments, offering housing solutions for individual homeowners, developers, retailers and communities.

Its products include single-section and multi-section manufactured homes, modular homes, accessory dwelling units and park model recreational vehicles. Champion Homes markets its products through independent retailers, company-owned retail operations and other distribution channels, and also provides related construction and installation services in selected markets.

The company traces its heritage to the Skyline and Champion businesses, which combined in 2018 to form Skyline Champion Corporation.

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