Goldman Sachs Group Inc. Raises Stake in Champion Homes, Inc. $SKY

Key Points

• Goldman Sachs increased its holdings in Champion Homes, Inc. by 63.7%, acquiring an additional 392,159 shares and now owning approximately 1.76% of the company worth $95.48 million.
• Champion Homes' stock price target has been upgraded by both Barclays and the Royal Bank of Canada, with average price expectations now set around $86.00.
• The company reported a quarterly revenue of $701.32 million, exceeding analyst expectations and showing an 11.7% increase compared to the previous year.

Goldman Sachs Group Inc. raised its stake in Champion Homes, Inc. (NYSE:SKY - Free Report) by 63.7% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,007,639 shares of the company's stock after acquiring an additional 392,159 shares during the quarter. Goldman Sachs Group Inc. owned approximately 1.76% of Champion Homes worth $95,484,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. AlphaQuest LLC raised its position in 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 acquiring an additional 788 shares during the period. GAMMA Investing LLC boosted its stake in shares of 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 acquiring an additional 765 shares during the last quarter. Global Trust Asset Management LLC acquired a new stake in shares of Champion Homes in the first quarter worth approximately $128,000. Bosun Asset Management LLC purchased a new stake in shares of Champion Homes during the first quarter worth approximately $208,000. Finally, PharVision Advisers LLC acquired a new position in Champion Homes in the 4th quarter valued at $216,000.

Analyst Ratings Changes

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

Champion Homes Trading Up 0.7%

Shares of SKY traded up $0.55 during trading on Monday, reaching $75.25. 502,106 shares of the company traded hands, compared to its average volume of 643,431. Champion Homes, Inc. has a twelve month low of $59.44 and a twelve month high of $116.49. The stock has a 50-day simple moving average of $70.10 and a 200-day simple moving average of $77.37. The stock has a market cap of $4.25 billion, a PE ratio of 20.01 and a beta of 1.18. 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 (NYSE:SKY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.31. Champion Homes had a return on equity of 14.35% and a net margin of 8.50%.The firm had revenue of $701.32 million for the quarter, compared to the consensus estimate of $642.18 million. During the same quarter in the previous year, the business earned $0.91 EPS. The company's quarterly revenue was up 11.7% compared to the same quarter last year. On average, analysts anticipate that Champion Homes, Inc. will post 3.63 earnings per share for the current year.

Champion Homes announced that its Board of Directors has authorized a stock repurchase program on Friday, May 30th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to buy up to 1.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Joseph A. Kimmell sold 3,000 shares of the company's stock in a transaction dated Friday, August 8th. The stock was 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 directly owned 44,568 shares of the company's stock, valued at approximately $2,942,825.04. This represents a 6.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.20% of the stock is owned by company insiders.

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.