Magnetar Financial LLC Takes Position in Champion Homes, Inc. $SKY

Key Points

• Magnetar Financial LLC bought 28,518 shares of Champion Homes, Inc. valued at approximately $2.7 million, signaling confidence in the company's prospects.
• Champion Homes reported earnings of $1.19 per share for the last quarter, surpassing expectations, and recorded a revenue increase of 11.7% from the same quarter last year.
• The company has launched a $50 million stock repurchase plan, indicating management's belief that the stock is undervalued.

Magnetar Financial LLC acquired a new stake in Champion Homes, Inc. (NYSE:SKY - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 28,518 shares of the company's stock, valued at approximately $2,702,000.

A number of other hedge funds have also recently made changes to their positions in the company. GAMMA Investing LLC raised 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 acquiring an additional 765 shares during the last quarter. Oppenheimer & Co. Inc. grew its stake in Champion Homes by 142.2% in the first quarter. Oppenheimer & Co. Inc. now owns 7,394 shares of the company's stock valued at $701,000 after acquiring an additional 4,341 shares during the period. Principal Financial Group Inc. grew its stake in Champion Homes by 2.3% in the first quarter. Principal Financial Group Inc. now owns 262,811 shares of the company's stock valued at $24,904,000 after acquiring an additional 5,887 shares during the period. New York State Teachers Retirement System grew its stake in Champion Homes by 3.4% in the first quarter. New York State Teachers Retirement System now owns 12,300 shares of the company's stock valued at $1,166,000 after acquiring an additional 400 shares during the period. Finally, Bessemer Group Inc. grew its stake in Champion Homes by 4.3% in the first quarter. Bessemer Group Inc. now owns 244,149 shares of the company's stock valued at $23,136,000 after acquiring an additional 10,107 shares during the period.

Wall Street Analyst Weigh In

SKY has been the topic of several analyst reports. Barclays lifted 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. Royal Bank Of Canada boosted their price objective 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. Finally, Zelman & Associates raised Champion Homes from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 5th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Champion Homes has an average rating of "Hold" and an average target price of $86.00.

Insider Buying and Selling at Champion Homes

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

Champion Homes Stock Performance

Shares of NYSE SKY traded up $1.39 during trading on Thursday, reaching $78.24. 289,320 shares of the stock traded hands, compared to its average volume of 647,411. Champion Homes, Inc. has a 52-week low of $59.44 and a 52-week 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. The company has a 50-day moving average of $68.32 and a 200-day moving average of $79.21. The stock has a market capitalization of $4.42 billion, a P/E ratio of 20.86 and a beta of 1.18.

Champion Homes (NYSE:SKY - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $1.19 earnings per share (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 analysts' expectations of $642.18 million. Champion Homes had a return on equity of 14.35% and a net margin of 8.50%.The firm's quarterly revenue was up 11.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.91 EPS. Analysts forecast that Champion Homes, Inc. will post 3.63 EPS for the current fiscal year.

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

About Champion Homes

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.