Fox Factory (NASDAQ:FOXF) Stock Price Up 6.4% - Should You Buy?

Key Points

• Fox Factory shares rose 6.4% on Thursday, trading as high as $19.14 after closing at $18.02, though volume was well below average.
• Analyst views remain mixed: Bank of America cut the stock to underperform with a $20 target, while the overall consensus rating is Hold with an average target price of $23.20.
• The company recently beat quarterly estimates, posting $0.18 EPS versus $0.09 expected and revenue of $368.66 million, while institutional investors including Nantahala Capital and Engine Capital significantly increased their stakes.

Fox Factory Holding Corp. (NASDAQ:FOXF - Get Free Report)'s stock price shot up 6.4% during trading on Thursday . The company traded as high as $19.14 and last traded at $19.1810. 86,007 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 610,323 shares. The stock had previously closed at $18.02.

Analyst Upgrades and Downgrades

Several analysts have issued reports on FOXF shares. Bank of America lowered Fox Factory from a "neutral" rating to an "underperform" rating and lowered their target price for the company from $24.00 to $20.00 in a research note on Tuesday, June 30th. Stifel Nicolaus set a $24.00 price objective on Fox Factory in a research note on Thursday, April 16th. Needham & Company LLC reaffirmed a "buy" rating on shares of Fox Factory in a report on Wednesday, June 3rd. Roth Capital reiterated a "neutral" rating and set a $20.00 target price on shares of Fox Factory in a research report on Friday, May 8th. Finally, Weiss Ratings downgraded shares of Fox Factory from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Fox Factory has an average rating of "Hold" and an average target price of $23.20.

Fox Factory Stock Up 7.4%

The company's 50 day simple moving average is $17.44 and its 200-day simple moving average is $17.69. The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.52 and a current ratio of 2.99. The firm has a market capitalization of $811.46 million, a PE ratio of -2.68, a PEG ratio of 0.68 and a beta of 1.37.

Fox Factory (NASDAQ:FOXF - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.09 by $0.09. The company had revenue of $368.66 million during the quarter, compared to analysts' expectations of $351.75 million. Fox Factory had a negative net margin of 20.25% and a positive return on equity of 5.20%. The firm's revenue was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.23 EPS. On average, analysts forecast that Fox Factory Holding Corp. will post 1.41 EPS for the current fiscal year.

Institutional Investors Weigh In On Fox Factory

Hedge funds and other institutional investors have recently modified their holdings of the stock. Nantahala Capital Management LLC grew its position in Fox Factory by 200.3% during the 4th quarter. Nantahala Capital Management LLC now owns 2,188,300 shares of the company's stock worth $37,442,000 after acquiring an additional 1,459,652 shares during the last quarter. Engine Capital Management LP boosted its stake in shares of Fox Factory by 162.3% during the first quarter. Engine Capital Management LP now owns 2,026,230 shares of the company's stock valued at $33,352,000 after purchasing an additional 1,253,808 shares during the period. Towle & Co. bought a new position in shares of Fox Factory in the fourth quarter worth approximately $8,967,000. Renaissance Technologies LLC increased its stake in shares of Fox Factory by 294.3% in the fourth quarter. Renaissance Technologies LLC now owns 547,693 shares of the company's stock worth $9,371,000 after buying an additional 408,800 shares during the period. Finally, Teachers Retirement System of The State of Kentucky raised its holdings in Fox Factory by 3,173.3% during the 4th quarter. Teachers Retirement System of The State of Kentucky now owns 388,666 shares of the company's stock valued at $6,650,000 after buying an additional 376,792 shares during the last quarter.

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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