Robotti Robert Trims Position in Champion Homes, Inc. (NYSE:SKY)

Key Points

• Robotti Robert reduced its stake in Champion Homes, Inc. (NYSE:SKY) by 43.7% in Q1, now holding 72,553 shares, which accounts for about 1.4% of its portfolio.
• Champion Homes reported earnings of $1.19 EPS for the latest quarter, exceeding analysts' expectations of $0.88, with revenue rising by 11.7% year-over-year to $701.32 million.
• The company initiated a stock repurchase plan to buy back $50 million in shares, indicating that the board believes the stock is currently undervalued.

Robotti Robert decreased its stake in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) by 43.7% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 72,553 shares of the company's stock after selling 56,361 shares during the period. Champion Homes comprises 1.4% of Robotti Robert's portfolio, making the stock its 18th largest holding. Robotti Robert owned about 0.13% of Champion Homes worth $6,875,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in SKY. Capital Research Global Investors purchased a new stake in shares of Champion Homes in the fourth quarter worth $98,978,000. Capital World Investors increased its stake in shares of Champion Homes by 31.5% in the fourth quarter. Capital World Investors now owns 2,638,862 shares of the company's stock worth $232,484,000 after purchasing an additional 632,718 shares in the last quarter. Ameriprise Financial Inc. increased its stake in shares of Champion Homes by 17.2% in the fourth quarter. Ameriprise Financial Inc. now owns 1,646,482 shares of the company's stock worth $145,055,000 after purchasing an additional 241,326 shares in the last quarter. SG Capital Management LLC increased its stake in shares of Champion Homes by 80.1% in the fourth quarter. SG Capital Management LLC now owns 340,512 shares of the company's stock worth $29,999,000 after purchasing an additional 151,488 shares in the last quarter. Finally, Nuveen LLC purchased a new stake in shares of Champion Homes in the first quarter worth $13,736,000.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Zelman & Associates raised shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 5th. Royal Bank Of Canada upped 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. Finally, 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 research report on Thursday, August 7th. Four equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $86.00.

Champion Homes Price Performance

SKY stock traded down $0.19 during trading on Friday, hitting $73.31. 974,496 shares of the company's stock traded hands, compared to its average volume of 688,303. 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 quick ratio of 1.59 and a current ratio of 2.39. The business has a fifty day simple moving average of $65.26 and a 200 day simple moving average of $81.47. The stock has a market capitalization of $4.14 billion, a price-to-earnings ratio of 19.50 and a beta of 1.13.

Champion Homes (NYSE:SKY - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $1.19 EPS for the quarter, beating 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 business had revenue of $701.32 million during the quarter, compared to analyst estimates of $642.18 million. During the same quarter last year, the business earned $0.91 earnings per share. Champion Homes's quarterly revenue was up 11.7% compared to the same quarter last year. As a group, research 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 buyback program on Friday, May 30th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to buy up to 1.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other Champion Homes news, EVP Joseph A. Kimmell sold 3,000 shares of the stock in a transaction on 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 $2,942,825.04. This trade represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.20% of the stock is owned by company insiders.

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.