Fox Factory (NASDAQ:FOXF) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Fox Factory (FOXF) from a "hold" to a "strong sell" in a research report issued Tuesday.
• FOXF opened at $18.18 with a market cap of $762.3M and a negative P/E of -1.39; the company beat quarterly EPS ($0.20 vs. $0.14) and revenue expectations but reported a negative net margin of 37.11% and only 2.3% year-over-year revenue growth.
• Analyst sentiment is mixed—MarketBeat shows an average rating of "Hold" with a consensus price target of $27.25, while recent notes include price-target cuts (Roth MKM to $19, Stifel at $24) and a reaffirmed sell from Weiss Ratings.

Fox Factory (NASDAQ:FOXF - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

FOXF has been the topic of a number of other reports. Stifel Nicolaus set a $24.00 price objective on Fox Factory in a research note on Thursday, April 16th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Fox Factory in a research note on Thursday, January 22nd. Finally, Roth Mkm reduced their price objective on Fox Factory from $21.00 to $19.00 and set a "neutral" rating on the stock in a research note on Tuesday, January 6th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $27.25.

Fox Factory Stock Up 2.9%

FOXF opened at $18.18 on Tuesday. The stock has a market cap of $762.34 million, a PE ratio of -1.39 and a beta of 1.37. The company has a quick ratio of 1.37, a current ratio of 2.86 and a debt-to-equity ratio of 0.96. Fox Factory has a 52 week low of $13.08 and a 52 week high of $31.18. The business's fifty day simple moving average is $17.04 and its 200 day simple moving average is $17.87.

Fox Factory (NASDAQ:FOXF - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.06. The business had revenue of $361.07 million for the quarter, compared to analysts' expectations of $353.88 million. Fox Factory had a positive return on equity of 5.06% and a negative net margin of 37.11%.The firm's revenue was up 2.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.31 earnings per share. As a group, research analysts expect that Fox Factory will post 1.44 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Angeles Wealth Management LLC grew its stake in shares of Fox Factory by 27.1% during the first quarter. Angeles Wealth Management LLC now owns 120,316 shares of the company's stock valued at $1,980,000 after buying an additional 25,682 shares during the last quarter. Illinois Municipal Retirement Fund boosted its holdings in shares of Fox Factory by 11.1% during the first quarter. Illinois Municipal Retirement Fund now owns 22,500 shares of the company's stock worth $370,000 after purchasing an additional 2,254 shares during the period. Advisors Preferred LLC boosted its holdings in shares of Fox Factory by 63.1% during the first quarter. Advisors Preferred LLC now owns 52,359 shares of the company's stock worth $862,000 after purchasing an additional 20,259 shares during the period. RWWM Inc. boosted its holdings in shares of Fox Factory by 4.7% during the first quarter. RWWM Inc. now owns 5,533,072 shares of the company's stock worth $91,074,000 after purchasing an additional 247,635 shares during the period. Finally, Fifth Third Bancorp boosted its holdings in shares of Fox Factory by 1,586.9% during the first quarter. Fifth Third Bancorp now owns 9,919 shares of the company's stock worth $163,000 after purchasing an additional 9,331 shares during the period.

About Fox Factory

Fox Factory Holding Corp., headquartered in Duluth, Minnesota, designs, engineers and manufactures high-performance suspension systems, shock absorbers and related components for powersports, light-vehicle and mountain-bike applications. The company's FOX brand offers a comprehensive portfolio of forks, shocks, coilovers and internal bypass dampers aimed at OEM and aftermarket customers seeking enhanced ride quality, control and durability across off-road vehicles, motorcycles and bicycles.

Founded in 1974 by Bob Fox in California, Fox Factory has expanded its technology base and market reach through strategic acquisitions such as Marzocchi Suspension, DVO Suspension and Walker Evans Racing.

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