Strs Ohio Invests $1.34 Million in Champion Homes, Inc. $SKY

Key Points

• Strs Ohio invested approximately $1.34 million in Champion Homes, Inc. by purchasing 14,100 shares during the 1st quarter.
• Champion Homes reported earnings of $1.19 per share, significantly exceeding analysts' expectations of $0.88, and saw an 11.7% increase in revenue year-over-year.
• The company has approved a $50 million stock repurchase plan, indicating the board's belief that the stock is undervalued.

Strs Ohio purchased a new position in shares of Champion Homes, Inc. (NYSE:SKY - Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 14,100 shares of the company's stock, valued at approximately $1,336,000.

A number of other hedge funds also recently modified their holdings of the business. Alliancebernstein L.P. raised its stake in Champion Homes by 67.1% during the first quarter. Alliancebernstein L.P. now owns 1,716,459 shares of the company's stock worth $162,652,000 after buying an additional 689,265 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Champion Homes by 63.7% during the first quarter. Goldman Sachs Group Inc. now owns 1,007,639 shares of the company's stock worth $95,484,000 after buying an additional 392,159 shares during the last quarter. Interval Partners LP bought a new position in Champion Homes during the first quarter worth $14,849,000. Nuveen LLC bought a new position in Champion Homes during the first quarter worth $13,736,000. Finally, Integrated Investment Consultants LLC raised its stake in Champion Homes by 134.4% during the first quarter. Integrated Investment Consultants LLC now owns 247,458 shares of the company's stock worth $23,449,000 after buying an additional 141,904 shares during the last quarter.

Champion Homes Stock Performance

SKY traded down $1.82 during midday trading on Friday, reaching $74.50. The company had a trading volume of 1,994,138 shares, compared to its average volume of 717,483. 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 stock has a market cap of $4.21 billion, a PE ratio of 19.81 and a beta of 1.18. Champion Homes, Inc. has a 12-month low of $59.44 and a 12-month high of $116.49. The business has a 50-day moving average price of $70.86 and a two-hundred day moving average price of $76.73.

Champion Homes (NYSE:SKY - Get Free Report) last released its earnings results 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 firm had revenue of $701.32 million for the quarter, compared to analysts' expectations of $642.18 million. Champion Homes had a net margin of 8.50% and a return on equity of 14.35%. The company's quarterly revenue was up 11.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.91 earnings per share. On average, sell-side analysts expect that Champion Homes, Inc. will post 3.63 earnings per share for the current fiscal year.

Champion Homes announced that its board has authorized a share buyback program on Friday, May 30th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

SKY has been the subject of several research analyst reports. Barclays lifted their price target on shares of Champion Homes from $72.00 to $74.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. Royal Bank Of Canada lifted their price target on shares of Champion Homes from $82.00 to $85.00 and gave the company a "sector perform" rating in a research note on Thursday, August 7th. Finally, Zelman & Associates raised shares of 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. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $86.00.

Insider Activity at Champion Homes

In related news, EVP Joseph A. Kimmell sold 1,000 shares of the company's stock in a transaction that occurred on 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 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 filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.20% of the company's stock.

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.