Alliancebernstein L.P. Purchases 689,265 Shares of Champion Homes, Inc. $SKY

Key Points

• Alliancebernstein L.P. significantly increased its stake in Champion Homes, Inc. by 67.1%, owning 1,716,459 shares valued at approximately $162.65 million.
• Champion Homes reported earnings of $1.19 per share for the last quarter, surpassing analysts' estimates of $0.88, alongside a revenue increase of 11.7% year-over-year.
• The company has initiated a $50 million stock repurchase plan, signaling confidence in the stock's value and potential undervaluation.

Alliancebernstein L.P. increased its holdings in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) by 67.1% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,716,459 shares of the company's stock after acquiring an additional 689,265 shares during the period. Alliancebernstein L.P. owned about 3.00% of Champion Homes worth $162,652,000 at the end of the most recent reporting period.

Other institutional investors have also made changes to their positions in the company. SG Capital Management LLC boosted its position in Champion Homes by 80.1% in the fourth quarter. SG Capital Management LLC now owns 340,512 shares of the company's stock valued at $29,999,000 after buying an additional 151,488 shares in the last quarter. Nuveen LLC acquired a new position in Champion Homes in the first quarter valued at about $13,736,000. Integrated Investment Consultants LLC boosted its position in Champion Homes by 134.4% in the first quarter. Integrated Investment Consultants LLC now owns 247,458 shares of the company's stock valued at $23,449,000 after buying an additional 141,904 shares in the last quarter. Summit Partners Public Asset Management LLC boosted its position in Champion Homes by 30.4% in the fourth quarter. Summit Partners Public Asset Management LLC now owns 527,770 shares of the company's stock valued at $46,497,000 after buying an additional 123,097 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Champion Homes in the fourth quarter valued at about $8,833,000.

Champion Homes Trading Down 0.7%

Shares of SKY traded down $0.54 on Wednesday, reaching $74.01. 103,656 shares of the company's stock were exchanged, compared to its average volume of 649,540. The company has a current ratio of 2.39, a quick ratio of 1.59 and a debt-to-equity ratio of 0.02. The stock has a market capitalization of $4.18 billion, a P/E ratio of 19.67 and a beta of 1.18. The business has a 50 day moving average price of $69.42 and a two-hundred day moving average price of $78.29. Champion Homes, Inc. has a 12 month low of $59.44 and a 12 month high of $116.49.

Champion Homes (NYSE:SKY - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $1.19 earnings per share for the quarter, topping analysts' consensus estimates of $0.88 by $0.31. The business had revenue of $701.32 million during 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%. Champion Homes's revenue for the quarter was up 11.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.91 earnings per share. Research analysts anticipate that Champion Homes, Inc. will post 3.63 earnings per share for the current year.

Champion Homes announced that its board has authorized a share buyback program on Friday, May 30th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to purchase up to 1.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

SKY has been the topic of a number of recent analyst reports. Royal Bank Of Canada boosted their price target on shares of Champion Homes from $82.00 to $85.00 and gave the company a "sector perform" rating in a research report on Thursday, August 7th. Barclays boosted their price target on shares of Champion Homes from $72.00 to $74.00 and gave the company an "equal weight" rating in a research report on Thursday, August 7th. Finally, Zelman & Associates raised shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 5th. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $86.00.

Insider Buying and Selling at Champion Homes

In related news, EVP Joseph A. Kimmell sold 1,000 shares of the business's stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $65.24, for a total transaction of $65,240.00. Following the completion of the sale, the executive vice president directly owned 43,568 shares of the company's stock, valued at $2,842,376.32. The trade was a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 1.20% of the stock is currently owned by company insiders.

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.