Capital World Investors Lowers Position in Fox Factory Holding Corp. $FOXF

Key Points

• Capital World Investors cut its stake in Fox Factory by 63.7%, selling 492,583 shares and ending the quarter with 281,096 shares worth about $6.83 million.
• Analysts are mixed but cautious: the consensus rating is a "Hold" with an average price target of $28.60 (1 Strong Buy, 2 Buy, 4 Hold, 1 Sell).
• Fox Factory beat recent quarterly estimates with $0.20 EPS (vs. $0.14) and $361.07M revenue, but remains unprofitable on the bottom line (net margin -37.11%) and trades near $15.83 with a market cap around $662 million.

Capital World Investors lessened its stake in Fox Factory Holding Corp. (NASDAQ:FOXF - Free Report) by 63.7% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 281,096 shares of the company's stock after selling 492,583 shares during the quarter. Capital World Investors owned about 0.67% of Fox Factory worth $6,828,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in FOXF. Dimensional Fund Advisors LP raised its position in shares of Fox Factory by 9.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,075,521 shares of the company's stock worth $26,125,000 after buying an additional 96,178 shares during the period. Geode Capital Management LLC grew its position in Fox Factory by 2.4% during the second quarter. Geode Capital Management LLC now owns 1,039,477 shares of the company's stock valued at $26,967,000 after acquiring an additional 24,156 shares during the period. Divisadero Street Capital Management LP purchased a new position in shares of Fox Factory in the 2nd quarter worth about $21,228,000. Nantahala Capital Management LLC raised its holdings in shares of Fox Factory by 15.9% in the 2nd quarter. Nantahala Capital Management LLC now owns 728,648 shares of the company's stock worth $18,901,000 after purchasing an additional 100,000 shares during the period. Finally, Bank of America Corp DE lifted its stake in shares of Fox Factory by 3.3% in the 2nd quarter. Bank of America Corp DE now owns 486,290 shares of the company's stock valued at $12,614,000 after purchasing an additional 15,417 shares in the last quarter.

Analyst Ratings Changes

FOXF has been the subject of a number of research analyst reports. Weiss Ratings reissued a "sell (d)" rating on shares of Fox Factory in a research report on Thursday, January 22nd. Zacks Research upgraded shares of Fox Factory from a "strong sell" rating to a "hold" rating in a report on Thursday, March 5th. Roth Mkm decreased their price objective on shares of Fox Factory from $21.00 to $19.00 and set a "neutral" rating for the company in a research note on Tuesday, January 6th. Finally, CJS Securities raised shares of Fox Factory to a "strong-buy" rating in a research note on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Fox Factory currently has a consensus rating of "Hold" and an average target price of $28.60.

Fox Factory Stock Performance

Shares of NASDAQ:FOXF opened at $15.83 on Friday. The business's 50-day simple moving average is $18.52 and its 200 day simple moving average is $20.39. The company has a market cap of $661.69 million, a P/E ratio of -1.21 and a beta of 1.50. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.37 and a current ratio of 2.86. Fox Factory Holding Corp. has a one year low of $13.08 and a one year high of $31.18.

Fox Factory (NASDAQ:FOXF - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.20 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.06. The firm had revenue of $361.07 million during the quarter, compared to analysts' expectations of $353.88 million. Fox Factory had a positive return on equity of 5.06% and a negative net margin of 37.11%.Fox Factory's quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.31 EPS. On average, sell-side analysts forecast that Fox Factory Holding Corp. will post 1.31 earnings per share for the current fiscal year.

Fox Factory Company Profile

Fox Factory Holding Corp., headquartered in Duluth, Minnesota, designs, engineers and manufactures high-performance suspension systems, shock absorbers and related components for powersports, light-vehicle and mountain-bike applications. The company's FOX brand offers a comprehensive portfolio of forks, shocks, coilovers and internal bypass dampers aimed at OEM and aftermarket customers seeking enhanced ride quality, control and durability across off-road vehicles, motorcycles and bicycles.

Founded in 1974 by Bob Fox in California, Fox Factory has expanded its technology base and market reach through strategic acquisitions such as Marzocchi Suspension, DVO Suspension and Walker Evans Racing.

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