Royce & Associates LP Trims Stake in Champion Homes, Inc. (NYSE:SKY)

Key Points

• Royce & Associates LP reduced its stake in Champion Homes, Inc. (NYSE:SKY) by 23.8%, currently holding 213,936 shares worth approximately $20.27 million.
• Analysts have downgraded the price objectives for Champion Homes from $96.00 to $82.00 and from $97.00 to $72.00, indicating a cautious outlook with a consensus rating of "Hold".
• Champion Homes has initiated a stock repurchase program, allowing for the repurchase of $50 million in shares, signifying confidence in the company's valuation amidst market fluctuations.

Royce & Associates LP trimmed its holdings in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) by 23.8% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 213,936 shares of the company's stock after selling 66,845 shares during the period. Royce & Associates LP owned approximately 0.37% of Champion Homes worth $20,273,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. Capital Research Global Investors purchased a new stake in shares of Champion Homes during the fourth quarter valued at approximately $98,978,000. Vanguard Group Inc. raised its holdings in Champion Homes by 17.3% in the 4th quarter. Vanguard Group Inc. now owns 5,942,992 shares of the company's stock worth $523,578,000 after acquiring an additional 876,712 shares during the last quarter. Norges Bank purchased a new position in Champion Homes in the 4th quarter worth approximately $69,346,000. Capital World Investors raised its holdings in Champion Homes by 31.5% in the 4th quarter. Capital World Investors now owns 2,638,862 shares of the company's stock worth $232,484,000 after acquiring an additional 632,718 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in Champion Homes by 17.2% in the 4th quarter. Ameriprise Financial Inc. now owns 1,646,482 shares of the company's stock worth $145,055,000 after acquiring an additional 241,326 shares during the last quarter.

Champion Homes Stock Performance

SKY traded up $0.50 during mid-day trading on Monday, reaching $65.56. 115,803 shares of the company traded hands, compared to its average volume of 626,957. The stock has a market capitalization of $3.76 billion, a P/E ratio of 19.17 and a beta of 1.16. The company has a quick ratio of 1.61, a current ratio of 2.41 and a debt-to-equity ratio of 0.02. The company's fifty day moving average price is $67.31 and its 200-day moving average price is $83.80. Champion Homes, Inc. has a 52-week low of $59.44 and a 52-week high of $116.49.

Champion Homes (NYSE:SKY - Get Free Report) last released its quarterly earnings results on Tuesday, May 27th. The company reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.75 by ($0.10). The business had revenue of $593.87 million during the quarter, compared to the consensus estimate of $595.42 million. Champion Homes had a return on equity of 13.61% and a net margin of 7.99%. The firm's revenue was up .7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.62 earnings per share. On average, sell-side analysts expect that Champion Homes, Inc. will post 3.63 EPS for the current year.

Champion Homes announced that its board has approved a stock repurchase program on Friday, May 30th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SKY. Royal Bank Of Canada decreased their price objective on shares of Champion Homes from $96.00 to $82.00 and set a "sector perform" rating for the company in a report on Wednesday, May 28th. Zelman & Associates upgraded shares of Champion Homes from a "strong sell" rating to a "hold" rating in a report on Thursday, June 5th. Finally, Barclays decreased their price objective on shares of Champion Homes from $97.00 to $72.00 and set an "equal weight" rating for the company in a report on Wednesday, May 28th. Six equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $80.60.

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.