Punch & Associates Investment Management Inc. Boosts Stake in Champion Homes, Inc. $SKY

Key Points

• Punch & Associates Investment Management Inc. increased its stake in Champion Homes, Inc. (NYSE:SKY) to approximately $15.51 million, making it the firm's 26th largest holding.
• Analysts have recently raised their target prices for Champion Homes, with Barclays upgrading it from $72.00 to $74.00 and Royal Bank of Canada lifting it to $85.00, while most analysts maintain a "Hold" rating.
• Champion Homes reported stronger-than-expected earnings of $1.19 EPS for the quarter, exceeding the consensus estimate and reflecting an 11.7% year-over-year revenue increase to $701.32 million.

Punch & Associates Investment Management Inc. boosted its position in Champion Homes, Inc. (NYSE:SKY - Free Report) by 2.1% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 163,635 shares of the company's stock after purchasing an additional 3,293 shares during the period. Champion Homes comprises 1.0% of Punch & Associates Investment Management Inc.'s portfolio, making the stock its 26th biggest holding. Punch & Associates Investment Management Inc. owned about 0.29% of Champion Homes worth $15,506,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. AlphaQuest LLC boosted its stake in Champion Homes by 1,231.3% in the 1st quarter. AlphaQuest LLC now owns 852 shares of the company's stock worth $81,000 after purchasing an additional 788 shares during the period. GAMMA Investing LLC increased its stake in Champion Homes by 306.0% in the 1st quarter. GAMMA Investing LLC now owns 1,015 shares of the company's stock worth $96,000 after buying an additional 765 shares during the period. Global Trust Asset Management LLC purchased a new stake in Champion Homes in the first quarter worth about $128,000. Bosun Asset Management LLC purchased a new stake in Champion Homes in the first quarter worth about $208,000. Finally, PharVision Advisers LLC purchased a new position in Champion Homes in the fourth quarter valued at about $216,000.

Champion Homes Stock Performance

Champion Homes stock traded up $2.17 during trading hours on Thursday, hitting $76.30. 681,396 shares of the stock traded hands, compared to its average volume of 652,391. 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 firm's 50 day moving average price is $69.56 and its 200-day moving average price is $78.26. The stock has a market capitalization of $4.31 billion, a price-to-earnings ratio of 20.29 and a beta of 1.18. 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 released its quarterly earnings data on Tuesday, August 5th. The company reported $1.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.88 by $0.31. The business had revenue of $701.32 million during the quarter, compared to analyst estimates of $642.18 million. Champion Homes had a return on equity of 14.35% and a net margin of 8.50%.The company's revenue was up 11.7% on a year-over-year basis. During the same quarter last year, the business posted $0.91 EPS. As a group, equities analysts expect that Champion Homes, Inc. will post 3.63 EPS for the current fiscal 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.

Insiders Place Their Bets

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 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 in the company, valued at approximately $2,942,825.04. This trade represents a 6.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.20% of the company's stock.

Analysts Set New Price Targets

SKY has been the topic of several analyst reports. Royal Bank Of Canada lifted their target price on Champion Homes from $82.00 to $85.00 and gave the company a "sector perform" rating in a research note on Thursday, August 7th. Barclays increased their price target on Champion Homes from $72.00 to $74.00 and gave the company an "equal weight" 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 note on Thursday, June 5th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, Champion Homes currently has a consensus rating of "Hold" and an average target price of $86.00.

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.