Harley-Davidson, Inc. (NYSE:HOG) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts' consensus "Hold": Eleven research firms give Harley-Davidson an average "Hold" rating (4 sell, 4 hold, 2 buy, 1 strong buy) with a mean 1‑year target of $21.67.
• Large recent earnings miss: The company reported EPS of ($2.44) versus consensus ($0.92) and revenue of $496.16M (down 9.8% YoY); analysts still project about 1.13 EPS for the current fiscal year.
• Dividend increase and insider/institutional moves: Quarterly dividend raised to $0.1875 (annual $0.75, 3.1% yield), a director bought shares while another sold, and institutional ownership is approximately 85.1% after several firms increased stakes.

Harley-Davidson, Inc. (NYSE:HOG - Get Free Report) has received an average recommendation of "Hold" from the eleven research firms that are covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a sell recommendation, four have given a hold recommendation, two have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $21.6667.

HOG has been the subject of a number of recent analyst reports. Zacks Research downgraded shares of Harley-Davidson from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 12th. Robert W. Baird set a $22.00 price objective on shares of Harley-Davidson in a research report on Wednesday, February 11th. Wells Fargo & Company initiated coverage on shares of Harley-Davidson in a research report on Wednesday, March 11th. They issued an "underweight" rating and a $15.00 price objective for the company. Argus raised shares of Harley-Davidson to a "strong-buy" rating in a research report on Tuesday, February 17th. Finally, Weiss Ratings downgraded shares of Harley-Davidson from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, March 2nd.

Harley-Davidson Trading Up 2.1%

Shares of HOG stock opened at $24.00 on Tuesday. Harley-Davidson has a 52-week low of $17.09 and a 52-week high of $31.25. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.83 and a current ratio of 2.10. The company has a 50-day simple moving average of $19.88 and a two-hundred day simple moving average of $22.04. The company has a market capitalization of $2.62 billion, a price-to-earnings ratio of 9.19 and a beta of 1.28.

Harley-Davidson (NYSE:HOG - Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The company reported ($2.44) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.92) by ($1.52). Harley-Davidson had a return on equity of 10.27% and a net margin of 8.03%.The firm had revenue of $496.16 million during the quarter, compared to the consensus estimate of $482.21 million. During the same period in the previous year, the company posted ($0.93) earnings per share. The company's revenue for the quarter was down 9.8% on a year-over-year basis. Research analysts anticipate that Harley-Davidson will post 1.13 EPS for the current fiscal year.

Harley-Davidson Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Shareholders of record on Monday, March 2nd were given a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Monday, March 2nd. This is a positive change from Harley-Davidson's previous quarterly dividend of $0.18. Harley-Davidson's payout ratio is currently 28.74%.

Insider Transactions at Harley-Davidson

In related news, Director Rafeh Masood bought 2,775 shares of the company's stock in a transaction on Friday, February 27th. The shares were purchased at an average cost of $18.00 per share, for a total transaction of $49,950.00. Following the completion of the purchase, the director directly owned 7,480 shares in the company, valued at $134,640. The trade was a 58.98% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director James D. Farley, Jr. sold 6,454 shares of the business's stock in a transaction dated 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 transaction, the director owned 16,205 shares in the company, valued at approximately $303,195.55. The trade was a 28.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.93% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC boosted its stake in Harley-Davidson by 96.5% in the fourth quarter. Hsbc Holdings PLC now owns 44,665 shares of the company's stock valued at $920,000 after acquiring an additional 21,931 shares during the last quarter. Virtu Financial LLC purchased a new position in Harley-Davidson in the fourth quarter valued at about $212,000. Invesco Ltd. boosted its stake in Harley-Davidson by 52.1% in the fourth quarter. Invesco Ltd. now owns 703,826 shares of the company's stock valued at $14,421,000 after acquiring an additional 241,045 shares during the last quarter. Empowered Funds LLC boosted its stake in Harley-Davidson by 659.0% in the fourth quarter. Empowered Funds LLC now owns 115,288 shares of the company's stock valued at $2,362,000 after acquiring an additional 100,098 shares during the last quarter. Finally, XTX Topco Ltd purchased a new position in Harley-Davidson in the fourth quarter valued at about $3,500,000. 85.10% of the stock is currently owned by hedge funds and other institutional investors.

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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