CenterBook Partners LP Purchases Shares of 23,861 Champion Homes, Inc. (NYSE:SKY)

Key Points

• CenterBook Partners LP acquired 23,861 shares of Champion Homes Inc. (NYSE:SKY), valued at approximately $2.26 million, in the first quarter of the year.
• Champion Homes recently announced a $50 million stock buyback plan, indicating the company's belief that its shares are undervalued.
• Barclays and Royal Bank Of Canada both lowered their price targets for Champion Homes, now set at $72.00 and $82.00 respectively, while the average target price among analysts is $80.60.

CenterBook Partners LP bought a new stake in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 23,861 shares of the company's stock, valued at approximately $2,261,000.

Other large investors have also recently modified their holdings of the company. Capital Research Global Investors purchased a new stake in Champion Homes in the fourth quarter worth about $98,978,000. Capital World Investors lifted its stake in shares of Champion Homes by 31.5% in the 4th quarter. Capital World Investors now owns 2,638,862 shares of the company's stock valued at $232,484,000 after purchasing an additional 632,718 shares during the period. Ameriprise Financial Inc. lifted its stake 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 during the period. JPMorgan Chase & Co. boosted its position in shares of Champion Homes by 120.3% during the fourth quarter. JPMorgan Chase & Co. now owns 280,396 shares of the company's stock valued at $24,703,000 after purchasing an additional 153,089 shares in the last quarter. Finally, SG Capital Management LLC grew its stake in Champion Homes by 80.1% in the fourth quarter. SG Capital Management LLC now owns 340,512 shares of the company's stock worth $29,999,000 after purchasing an additional 151,488 shares during the period.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Royal Bank Of Canada raised their price objective on Champion Homes from $82.00 to $85.00 and gave the company a "sector perform" rating in a research report on Thursday. Barclays lifted 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. Finally, Zelman & Associates upgraded shares of Champion Homes from a "strong sell" rating to a "hold" rating in a report on Thursday, June 5th. Four research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $86.00.

Champion Homes Stock Down 2.1%

Shares of NYSE:SKY traded down $1.44 on Friday, hitting $66.06. 557,833 shares of the company traded hands, compared to its average volume of 637,534. Champion Homes, Inc. has a 52 week low of $59.44 and a 52 week high of $116.49. The stock has a 50 day simple moving average of $64.60 and a 200-day simple moving average of $82.17. The company has a market cap of $3.78 billion, a PE ratio of 17.57 and a beta of 1.13. The company has a quick ratio of 1.61, a current ratio of 2.39 and a debt-to-equity ratio of 0.02.

Champion Homes (NYSE:SKY - Get Free Report) last announced its quarterly earnings data 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 company had revenue of $701.32 million during the quarter, compared to analyst estimates of $642.18 million. Champion Homes had a net margin of 8.50% and a return on equity of 14.35%. The firm's revenue for the quarter was up 11.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.91 EPS. As a group, research analysts expect that Champion Homes, Inc. will post 3.63 earnings per share for the current year.

Champion Homes declared that its board has initiated a stock repurchase plan on Friday, May 30th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 1.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

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.