Gabelli Funds LLC Lowers Stake in Champion Homes, Inc. $SKY

Key Points

• Gabelli Funds LLC reduced its stake in Champion Homes, Inc. by 7.4%, owning approximately 126,500 shares valued at nearly $12 million after selling 10,100 shares.
• Several institutional investors increased their holdings in Champion Homes during the same period, with Ameriprise Financial Inc. growing its stake by 17.2%.
• Champion Homes reported strong quarterly earnings, beating analyst estimates with an EPS of $1.19, and announced a stock repurchase program allowing for a buyback of up to $50 million in shares.

Gabelli Funds LLC cut its holdings in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) by 7.4% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 126,500 shares of the company's stock after selling 10,100 shares during the period. Gabelli Funds LLC owned 0.22% of Champion Homes worth $11,987,000 at the end of the most recent quarter.

Other large investors have also made changes to their positions in the company. AlphaQuest LLC increased its position in shares of Champion Homes by 1,231.3% during the first quarter. AlphaQuest LLC now owns 852 shares of the company's stock worth $81,000 after purchasing an additional 788 shares in the last quarter. GAMMA Investing LLC increased its position in shares of Champion Homes by 306.0% during 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 in the last quarter. Global Trust Asset Management LLC acquired a new position in shares of Champion Homes during the first quarter worth $128,000. PharVision Advisers LLC acquired a new position in shares of Champion Homes during the fourth quarter worth $216,000. Finally, Sowell Financial Services LLC acquired a new position in shares of Champion Homes during the first quarter worth $233,000.

Champion Homes Stock Performance

SKY traded down $1.12 during midday trading on Tuesday, hitting $74.34. 86,903 shares of the company were exchanged, compared to its average volume of 646,614. The company's 50 day simple moving average is $67.82 and its 200 day simple moving average is $79.26. The firm has a market capitalization of $4.20 billion, a price-to-earnings ratio of 19.75 and a beta of 1.18. The company has a current ratio of 2.39, a quick ratio of 1.59 and a debt-to-equity ratio of 0.02. Champion Homes, Inc. has a 1-year low of $59.44 and a 1-year high of $116.49.

Champion Homes (NYSE:SKY - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.31. The company had revenue of $701.32 million for the quarter, compared to the consensus estimate of $642.18 million. Champion Homes had a return on equity of 14.35% and a net margin of 8.50%.The firm's revenue for the quarter was up 11.7% compared to the same quarter last year. During the same period last year, the firm earned $0.91 EPS. As a group, sell-side analysts predict that Champion Homes, Inc. will post 3.63 earnings per share for the current year.

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

Insider Activity

In other news, EVP Joseph A. Kimmell sold 1,000 shares of the stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $65.24, for a total transaction of $65,240.00. Following the sale, the executive vice president directly owned 43,568 shares of the company's stock, valued at $2,842,376.32. This represents a 2.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.20% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Royal Bank Of Canada upped their price target on Champion Homes from $82.00 to $85.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 7th. Zelman & Associates raised Champion Homes from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 5th. Finally, Barclays upped their target price on Champion Homes from $72.00 to $74.00 and gave the company an "equal weight" 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. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $86.00.

Champion Homes Company 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.