Townsquare Capital LLC Acquires 3,970 Shares of Champion Homes, Inc. (NYSE:SKY)

Key Points

• Townsquare Capital LLC increased its stake in Champion Homes, Inc. by 11.3%, acquiring an additional 3,970 shares, bringing its total holdings to approximately 39,155 shares valued at $3,710,000.
• Analyst ratings have shifted, with Royal Bank of Canada and Barclays raising their target prices for Champion Homes, now averaging $86.00, while four analysts rate the stock as a "Hold."
• Champion Homes reported a quarterly earnings per share of $1.19, exceeding forecasts and demonstrating an 11.7% year-over-year revenue growth with net earnings contributing to a stable financial outlook.

Townsquare Capital LLC lifted its position in Champion Homes, Inc. (NYSE:SKY - Free Report) by 11.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 39,155 shares of the company's stock after purchasing an additional 3,970 shares during the period. Townsquare Capital LLC owned about 0.07% of Champion Homes worth $3,710,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of SKY. LPL Financial LLC increased its stake in shares of Champion Homes by 11.6% in the fourth quarter. LPL Financial LLC now owns 3,685 shares of the company's stock worth $325,000 after purchasing an additional 384 shares in the last quarter. Wells Fargo & Company MN increased its stake in shares of Champion Homes by 6.1% in the fourth quarter. Wells Fargo & Company MN now owns 128,570 shares of the company's stock worth $11,327,000 after purchasing an additional 7,415 shares in the last quarter. Bank of Montreal Can increased its stake in shares of Champion Homes by 131.8% in the fourth quarter. Bank of Montreal Can now owns 9,167 shares of the company's stock worth $808,000 after purchasing an additional 5,212 shares in the last quarter. Invesco Ltd. increased its stake in shares of Champion Homes by 28.7% in the fourth quarter. Invesco Ltd. now owns 312,462 shares of the company's stock worth $27,528,000 after purchasing an additional 69,723 shares in the last quarter. Finally, Legal & General Group Plc increased its stake in shares of Champion Homes by 131.0% in the fourth quarter. Legal & General Group Plc now owns 146,560 shares of the company's stock worth $12,912,000 after purchasing an additional 83,120 shares in the last quarter.

Insiders Place Their Bets

In related news, EVP Joseph A. Kimmell sold 3,000 shares of the firm's 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 directly owned 44,568 shares of the company's stock, valued at approximately $2,942,825.04. This trade represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.20% of the company's stock.

Champion Homes Price Performance

SKY traded up $4.16 during trading on Tuesday, hitting $70.10. 551,715 shares of the company traded hands, compared to its average volume of 645,090. The company has a market cap of $3.96 billion, a PE ratio of 18.64 and a beta of 1.13. The stock's 50-day simple moving average is $64.75 and its two-hundred day simple moving average is $81.82. Champion Homes, Inc. has a 1 year low of $59.44 and a 1 year high of $116.49. The company has a current ratio of 2.39, a quick ratio of 1.59 and a debt-to-equity ratio of 0.02.

Champion Homes (NYSE:SKY - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $0.88 by $0.31. The company had revenue of $701.32 million during 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%. Champion Homes's quarterly revenue was up 11.7% on a year-over-year basis. During the same period last year, the company posted $0.91 earnings per share. As a group, sell-side analysts anticipate that Champion Homes, Inc. will post 3.63 earnings per share for the current fiscal year.

Champion Homes declared that its board has approved a stock buyback plan on Friday, May 30th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to reacquire up to 1.3% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

A number of analysts have recently issued reports on SKY shares. Royal Bank Of Canada increased their price objective 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. Zelman & Associates raised shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 5th. Finally, Barclays increased their price objective on shares of Champion Homes from $72.00 to $74.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Four investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to data from MarketBeat.com, Champion Homes presently has a consensus rating of "Hold" and an average target price of $86.00.

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.