Citigroup Inc. Cuts Position in Harley-Davidson, Inc. $HOG

Key Points

• Citigroup cut its stake in Harley‑Davidson by 73.3% in Q3, selling 257,147 shares and leaving 93,900 shares valued at about $2.62 million.
• Harley‑Davidson posted a large quarterly EPS miss (−$2.44 vs. −$0.92 expected) with revenue down 9.8% year‑over‑year, but the company raised its quarterly dividend to $0.1875 (annualized $0.75, yield ~3.9%).
• Shares trade near $19.22 with a market cap of $2.15 billion and a PE of 7.36; analysts’ consensus is a “Hold” with an average price target of $22.50, and institutional investors own about 85% of the stock.

Citigroup Inc. lessened its position in Harley-Davidson, Inc. (NYSE:HOG - Free Report) by 73.3% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 93,900 shares of the company's stock after selling 257,147 shares during the quarter. Citigroup Inc. owned 0.08% of Harley-Davidson worth $2,620,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also added to or reduced their stakes in the company. Covestor Ltd boosted its holdings in shares of Harley-Davidson by 6.7% in the 3rd quarter. Covestor Ltd now owns 7,057 shares of the company's stock worth $197,000 after purchasing an additional 442 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its holdings in shares of Harley-Davidson by 2.6% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 28,093 shares of the company's stock valued at $663,000 after buying an additional 700 shares in the last quarter. Securian Asset Management Inc. raised its holdings in shares of Harley-Davidson by 9.3% during the 3rd quarter. Securian Asset Management Inc. now owns 9,103 shares of the company's stock valued at $254,000 after buying an additional 777 shares in the last quarter. Yousif Capital Management LLC lifted its position in Harley-Davidson by 2.0% in the 3rd quarter. Yousif Capital Management LLC now owns 40,758 shares of the company's stock worth $1,137,000 after buying an additional 785 shares during the last quarter. Finally, State of Alaska Department of Revenue lifted its position in Harley-Davidson by 8.2% in the 3rd quarter. State of Alaska Department of Revenue now owns 13,273 shares of the company's stock worth $370,000 after buying an additional 1,010 shares during the last quarter. Hedge funds and other institutional investors own 85.10% of the company's stock.

Harley-Davidson Trading Up 0.7%

Shares of HOG stock opened at $19.22 on Friday. The business has a 50-day moving average of $20.13 and a 200 day moving average of $24.08. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.10 and a quick ratio of 1.83. Harley-Davidson, Inc. has a 1-year low of $17.11 and a 1-year high of $31.25. The stock has a market capitalization of $2.15 billion, a PE ratio of 7.36 and a beta of 1.42.

Harley-Davidson (NYSE:HOG - Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The company reported ($2.44) EPS for the quarter, missing analysts' consensus estimates of ($0.92) by ($1.52). Harley-Davidson had a return on equity of 10.27% and a net margin of 8.03%.The company had revenue of $496.16 million during the quarter, compared to analysts' expectations of $482.21 million. During the same period last year, the firm earned ($0.93) earnings per share. Harley-Davidson's revenue for the quarter was down 9.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Harley-Davidson, Inc. will post 3.44 earnings per share for the current year.

Harley-Davidson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Monday, March 2nd will be paid a $0.1875 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This is a positive change from Harley-Davidson's previous quarterly dividend of $0.18. This represents a $0.75 annualized dividend and a dividend yield of 3.9%. Harley-Davidson's payout ratio is presently 28.74%.

Analyst Ratings Changes

A number of research analysts have commented on the stock. DA Davidson reduced their price target on shares of Harley-Davidson from $30.00 to $25.00 and set a "buy" rating on the stock in a research report on Thursday, February 12th. Loop Capital began coverage on shares of Harley-Davidson in a report on Tuesday, November 25th. They issued a "hold" rating and a $21.00 price objective for the company. Robert W. Baird set a $22.00 price objective on shares of Harley-Davidson in a research note on Wednesday, February 11th. Zacks Research lowered shares of Harley-Davidson from a "hold" rating to a "strong sell" rating in a report on Thursday, February 12th. Finally, BMO Capital Markets reiterated an "outperform" rating and issued a $24.00 target price on shares of Harley-Davidson in a research report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $22.50.

Insiders Place Their Bets

In other news, Director Rafeh Masood purchased 2,775 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was bought at an average cost of $18.00 per share, for a total transaction of $49,950.00. Following the acquisition, the director directly owned 7,480 shares of the company's stock, valued at $134,640. This represents a 58.98% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director James D. Farley, Jr. sold 6,454 shares of the stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.71, for a total transaction of $120,754.34. Following the sale, the director directly owned 16,205 shares of the company's stock, valued at $303,195.55. The trade was a 28.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.93% of the company's stock.

Harley-Davidson Profile

Harley-Davidson, Inc is a renowned American motorcycle manufacturer best known for its heavyweight cruiser and touring bikes. Founded in 1903 in Milwaukee, Wisconsin, the company has built a strong reputation for producing distinctive motorcycles characterized by their signature V-twin engines, chrome finishes and robust frames. Harley-Davidson markets its products globally through a network of franchised dealerships and focuses on delivering an immersive brand experience to its customers, emphasizing lifestyle and community alongside its motorcycles.

In addition to its core motorcycle business, Harley-Davidson offers an extensive range of parts, accessories and apparel under its Genuine Motor Parts & Accessories and MotorClothes lines.

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