Champion Homes, Inc. $SKY Shares Sold by American Century Companies Inc.

Key Points

• American Century Companies Inc. reduced its stake in Champion Homes, Inc. by 8.6% during the 1st quarter, now holding approximately 1,289,929 shares valued at $122.23 million.
• Analysts have recently upgraded Champion Homes' consensus rating to "Hold," with target prices ranging from $74.00 to $86.00 following the company's positive earnings report exceeding estimates.
• Champion Homes announced a share repurchase plan of $50 million, indicating that the board believes its stock may be undervalued.

American Century Companies Inc. lowered its stake in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) by 8.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,289,929 shares of the company's stock after selling 121,840 shares during the period. American Century Companies Inc. owned 2.25% of Champion Homes worth $122,234,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Capital World Investors lifted its stake in Champion Homes by 31.5% in the fourth quarter. Capital World Investors now owns 2,638,862 shares of the company's stock worth $232,484,000 after purchasing an additional 632,718 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Champion Homes by 17.2% in the 4th quarter. Ameriprise Financial Inc. now owns 1,646,482 shares of the company's stock valued at $145,055,000 after purchasing an additional 241,326 shares in the last quarter. Capital Research Global Investors purchased a new stake in shares of Champion Homes in the 4th quarter worth approximately $98,978,000. Charles Schwab Investment Management Inc. lifted its position in shares of Champion Homes by 2.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 698,052 shares of the company's stock worth $66,147,000 after purchasing an additional 15,793 shares during the period. Finally, Congress Asset Management Co. boosted its stake in shares of Champion Homes by 8.8% during the first quarter. Congress Asset Management Co. now owns 661,578 shares of the company's stock valued at $62,691,000 after purchasing an additional 53,543 shares in the last quarter.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Barclays boosted their price target on Champion Homes from $72.00 to $74.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 7th. Zelman & Associates upgraded shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 5th. Finally, Royal Bank Of Canada upped their price target 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. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, Champion Homes currently has an average rating of "Hold" and a consensus price target of $86.00.

Champion Homes Price Performance

Shares of SKY traded up $4.6150 during trading hours on Friday, hitting $76.0850. 343,225 shares of the stock were exchanged, compared to its average volume of 648,656. The stock's 50-day moving average price is $65.84 and its two-hundred day moving average price is $81.01. Champion Homes, Inc. has a 12-month low of $59.44 and a 12-month high of $116.49. 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 company has a market cap of $4.30 billion, a price-to-earnings ratio of 20.25 and a beta of 1.13.

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

Champion Homes declared that its Board of Directors has approved a share buyback program on Friday, May 30th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 1.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board believes its stock is undervalued.

Insider Buying and Selling

In other Champion Homes news, EVP Joseph A. Kimmell sold 1,000 shares of the firm'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 value of $65,240.00. Following the transaction, the executive vice president directly owned 43,568 shares of the company's stock, valued at $2,842,376.32. This trade represents a 2.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.20% of the company's stock.

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.