Clough Capital Partners L P Acquires New Holdings in Champion Homes, Inc. $SKY

Key Points

• Clough Capital Partners L P has made a new investment of approximately $968,000 in Champion Homes, Inc. by purchasing 10,213 shares in the first quarter.
• Champion Homes reported earnings of $1.19 per share, exceeding analysts' expectations, along with a revenue increase of 11.7% year-over-year.
• The company's board has authorized a $50 million stock repurchase program, indicating a belief that the stock may be undervalued.

Clough Capital Partners L P purchased a new stake in Champion Homes, Inc. (NYSE:SKY - Free Report) in the first quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 10,213 shares of the company's stock, valued at approximately $968,000.

Other institutional investors have also recently made changes to their positions in the company. AlphaQuest LLC lifted its holdings in shares of Champion Homes by 1,231.3% in the 1st quarter. AlphaQuest LLC now owns 852 shares of the company's stock valued at $81,000 after acquiring an additional 788 shares during the last quarter. GAMMA Investing LLC lifted its stake in Champion Homes by 306.0% in the first quarter. GAMMA Investing LLC now owns 1,015 shares of the company's stock worth $96,000 after purchasing an additional 765 shares during the last quarter. Global Trust Asset Management LLC bought a new stake in Champion Homes in the first quarter worth about $128,000. PharVision Advisers LLC bought a new stake in Champion Homes in the fourth quarter worth about $216,000. Finally, Shay Capital LLC bought a new stake in Champion Homes in the fourth quarter worth about $220,000.

Wall Street Analysts Forecast Growth

SKY has been the subject of several analyst reports. Barclays raised their price objective on shares of Champion Homes from $72.00 to $74.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Royal Bank Of Canada raised their price objective on shares of Champion Homes from $82.00 to $85.00 and gave the stock a "sector perform" rating in a research note on Thursday, August 7th. Finally, Zelman & Associates raised shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 5th. One research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $86.00.

Champion Homes Trading Up 0.7%

Shares of NYSE:SKY traded up $0.56 during trading on Monday, reaching $75.49. 635,903 shares of the company were exchanged, compared to its average volume of 750,064. The firm has a market capitalization of $4.27 billion, a PE ratio of 20.08 and a beta of 1.18. The business's fifty day simple moving average is $67.56 and its 200-day simple moving average is $79.48. 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 current ratio of 2.39 and a quick ratio of 1.59.

Champion Homes (NYSE:SKY - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $1.19 EPS for the quarter, topping analysts' consensus estimates of $0.88 by $0.31. The business had revenue of $701.32 million for 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 company's quarterly revenue was up 11.7% compared to the same quarter last year. During the same period last year, the company posted $0.91 earnings per share. On average, research analysts anticipate that Champion Homes, Inc. will post 3.63 EPS for the current year.

Champion Homes declared that its Board of Directors has initiated a stock buyback plan on Friday, May 30th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 1.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at Champion Homes

In related news, EVP Joseph A. Kimmell sold 3,000 shares of Champion Homes stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $66.03, for a total transaction of $198,090.00. Following the transaction, the executive vice president directly owned 44,568 shares of the company's stock, valued at $2,942,825.04. This trade represents a 6.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 1.20% of the stock is currently owned by insiders.

Champion Homes Profile

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.