Vanguard Group Inc. Trims Stake in Harley-Davidson, Inc. $HOG

Key Points

• Vanguard reduced its stake in Harley-Davidson by 11.7% in the fourth quarter, selling about 1.51 million shares and leaving it with 11.45 million shares, or roughly 9.69% of the company.
• Harley-Davidson’s latest earnings were mixed: it posted EPS of $0.22 versus the $0.34 consensus, but revenue came in at $1.17 billion, ahead of estimates, though still down 11.7% year over year.
• Analysts remain cautious overall, with a consensus rating of “Hold” and an average price target of $23.11, even as some firms rate the stock Buy or Outperform and the company trades above that target at $25.41.

Vanguard Group Inc. lessened its holdings in Harley-Davidson, Inc. (NYSE:HOG - Free Report) by 11.7% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 11,446,616 shares of the company's stock after selling 1,511,945 shares during the period. Vanguard Group Inc. owned approximately 9.69% of Harley-Davidson worth $234,541,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of HOG. EverSource Wealth Advisors LLC raised its holdings in Harley-Davidson by 139.0% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 944 shares of the company's stock valued at $26,000 after buying an additional 549 shares during the period. Geneos Wealth Management Inc. boosted its stake in Harley-Davidson by 153.8% during the first quarter. Geneos Wealth Management Inc. now owns 2,109 shares of the company's stock worth $53,000 after buying an additional 1,278 shares during the period. Westfuller Advisors LLC purchased a new position in Harley-Davidson during the third quarter worth about $67,000. Hantz Financial Services Inc. increased its position in shares of Harley-Davidson by 203.3% during the third quarter. Hantz Financial Services Inc. now owns 2,426 shares of the company's stock valued at $68,000 after acquiring an additional 1,626 shares during the last quarter. Finally, Rothschild Investment LLC increased its position in shares of Harley-Davidson by 310.2% during the third quarter. Rothschild Investment LLC now owns 2,461 shares of the company's stock valued at $69,000 after acquiring an additional 1,861 shares during the last quarter. 85.10% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

HOG has been the topic of several recent analyst reports. BMO Capital Markets restated an "outperform" rating and issued a $24.00 price objective on shares of Harley-Davidson in a report on Wednesday, February 11th. Wall Street Zen downgraded shares of Harley-Davidson from a "hold" rating to a "sell" rating in a report on Saturday, March 7th. Robert W. Baird set a $28.00 target price on Harley-Davidson in a research report on Wednesday. Morgan Stanley restated an "underweight" rating and set a $12.00 price target on shares of Harley-Davidson in a research note on Tuesday, February 17th. Finally, Argus upgraded Harley-Davidson to a "strong-buy" rating in a research report on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $23.11.

Harley-Davidson Price Performance

Shares of NYSE HOG opened at $25.41 on Friday. The stock's 50-day moving average is $20.64 and its two-hundred day moving average is $21.79. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.91 and a quick ratio of 1.83. Harley-Davidson, Inc. has a 1-year low of $17.09 and a 1-year high of $31.25. The company has a market cap of $2.68 billion, a price-to-earnings ratio of 14.44 and a beta of 1.27.

Harley-Davidson (NYSE:HOG - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.34 by ($0.12). Harley-Davidson had a net margin of 5.68% and a return on equity of 7.03%. The company had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same period in the prior year, the business earned $1.07 EPS. Harley-Davidson's revenue for the quarter was down 11.7% on a year-over-year basis. Analysts forecast that Harley-Davidson, Inc. will post 0.63 EPS for the current fiscal year.

Harley-Davidson Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Monday, March 2nd were issued a $0.1875 dividend. This represents a $0.75 annualized dividend and a yield of 3.0%. This is a positive change from Harley-Davidson's previous quarterly dividend of $0.18. The ex-dividend date of this dividend was Monday, March 2nd. Harley-Davidson's dividend payout ratio is 42.61%.

Insider Buying and Selling

In other news, Director Rafeh Masood acquired 2,775 shares of the company's stock in a transaction on Friday, February 27th. The shares were bought at an average cost of $18.00 per share, with a total value of $49,950.00. Following the transaction, the director owned 7,480 shares in the company, valued at approximately $134,640. This trade represents a 58.98% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director James D. Farley, Jr. sold 6,454 shares of the firm's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.71, for a total transaction of $120,754.34. Following the completion of the sale, the director owned 16,205 shares in the company, valued at $303,195.55. The trade was a 28.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.97% of the stock is owned by insiders.

About Harley-Davidson

Harley-Davidson, Inc is a renowned American motorcycle manufacturer best known for its heavyweight cruiser and touring bikes. Founded in 1903 in Milwaukee, Wisconsin, the company has built a strong reputation for producing distinctive motorcycles characterized by their signature V-twin engines, chrome finishes and robust frames. Harley-Davidson markets its products globally through a network of franchised dealerships and focuses on delivering an immersive brand experience to its customers, emphasizing lifestyle and community alongside its motorcycles.

In addition to its core motorcycle business, Harley-Davidson offers an extensive range of parts, accessories and apparel under its Genuine Motor Parts & Accessories and MotorClothes lines.

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