Cramer Rosenthal Mcglynn LLC Decreases Stake in Champion Homes, Inc. $SKY

Key Points

• Cramer Rosenthal Mcglynn LLC reduced its holdings in Champion Homes, Inc. by 7.6%, making it the largest position in their portfolio.
• Champion Homes recently experienced a significant share repurchase plan, allowing the company to reacquire $50 million worth of its stock, indicating a belief that the stock is undervalued.
• Analysts have upgraded Champion Homes' rating, with a consensus target price now set at $86.00.

Cramer Rosenthal Mcglynn LLC decreased its stake in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) by 7.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 553,730 shares of the company's stock after selling 45,567 shares during the period. Champion Homes makes up about 3.8% of Cramer Rosenthal Mcglynn LLC's investment portfolio, making the stock its largest holding. Cramer Rosenthal Mcglynn LLC owned about 0.97% of Champion Homes worth $52,471,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in SKY. LPL Financial LLC grew its position in Champion Homes by 11.6% in the fourth quarter. LPL Financial LLC now owns 3,685 shares of the company's stock valued at $325,000 after purchasing an additional 384 shares in the last quarter. Marshall Wace LLP acquired a new stake in shares of Champion Homes during the 4th quarter worth about $677,000. MetLife Investment Management LLC lifted its stake in shares of Champion Homes by 5.9% during the 4th quarter. MetLife Investment Management LLC now owns 32,308 shares of the company's stock worth $2,846,000 after buying an additional 1,802 shares during the last quarter. Teachers Retirement System of The State of Kentucky acquired a new stake in shares of Champion Homes during the 4th quarter worth about $1,674,000. Finally, Tower Research Capital LLC TRC raised its stake in Champion Homes by 1,252.6% in the 4th quarter. Tower Research Capital LLC TRC now owns 3,084 shares of the company's stock worth $272,000 after purchasing an additional 2,856 shares in the last quarter.

Insiders Place Their Bets

In related news, EVP Joseph A. Kimmell sold 3,000 shares of the stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $66.03, for a total transaction of $198,090.00. Following the completion of the transaction, the executive vice president owned 44,568 shares in the company, valued at approximately $2,942,825.04. This represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.20% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently commented on SKY shares. Barclays raised their price target on Champion Homes from $72.00 to $74.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 7th. Zelman & Associates raised shares of Champion Homes from a "strong sell" rating to a "hold" rating in a report on Thursday, June 5th. Finally, Royal Bank Of Canada lifted their target price on shares of Champion Homes from $82.00 to $85.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 7th. One equities research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $86.00.

Champion Homes Stock Up 0.3%

SKY stock traded up $0.20 during midday trading on Thursday, reaching $74.93. 670,262 shares of the company's stock traded hands, compared to its average volume of 795,900. The company has a market cap of $4.24 billion, a price-to-earnings ratio of 19.61 and a beta of 1.13. The firm's fifty day moving average price is $66.97 and its 200-day moving average price is $80.27. The company has a quick ratio of 1.59, a current ratio of 2.39 and a debt-to-equity ratio of 0.02. 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 posted its earnings results on Tuesday, August 5th. The company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.31. Champion Homes had a net margin of 8.50% and a return on equity of 14.35%. The firm had revenue of $701.32 million during the quarter, compared to analyst estimates of $642.18 million. During the same quarter in the prior year, the business posted $0.91 EPS. The business's revenue was up 11.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Champion Homes, Inc. will post 3.63 earnings per share for the current fiscal year.

Champion Homes announced that its Board of Directors has authorized a stock repurchase program on Friday, May 30th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to reacquire up to 1.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board believes its stock is undervalued.

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.