Harley-Davidson (NYSE:HOG) Coverage Initiated at Wells Fargo & Company

Key Points

• Wells Fargo initiated coverage with an "underweight" rating and a $15 price target, implying roughly a 20.7% downside from the prior close.
• Harley-Davidson posted a large quarterly EPS miss (reported -$2.44 vs. expected -$0.92), while revenue of $496.2M slightly beat estimates but fell 9.8% year-over-year.
• Analyst consensus remains an average "Hold" with an average price target of $21.67; the stock trades near $18.92 with a 12-month range of $17.11–$31.25 and a market cap around $2.12B.

Analysts at Wells Fargo & Company initiated coverage on shares of Harley-Davidson (NYSE:HOG - Get Free Report) in a note issued to investors on Wednesday. The firm set an "underweight" rating and a $15.00 price target on the stock. Wells Fargo & Company's target price would indicate a potential downside of 20.70% from the company's previous close.

Other research analysts have also issued reports about the stock. DA Davidson decreased their price target on shares of Harley-Davidson from $30.00 to $25.00 and set a "buy" rating for the company in a research note on Thursday, February 12th. Wall Street Zen cut shares of Harley-Davidson from a "hold" rating to a "sell" rating in a report on Saturday. UBS Group decreased their target price on shares of Harley-Davidson from $27.00 to $19.00 and set a "neutral" rating for the company in a research note on Wednesday, March 4th. Citigroup lowered their target price on shares of Harley-Davidson from $28.00 to $23.00 and set a "neutral" rating for the company in a report on Wednesday, January 14th. Finally, Weiss Ratings cut Harley-Davidson from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, four have assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $21.67.

Harley-Davidson Trading Up 0.8%

NYSE HOG opened at $18.92 on Wednesday. The firm has a market capitalization of $2.12 billion, a PE ratio of 7.25 and a beta of 1.42. The stock's 50 day moving average is $20.05 and its 200 day moving average is $23.90. Harley-Davidson has a twelve month low of $17.11 and a twelve month high of $31.25. The company has a quick ratio of 1.83, a current ratio of 2.10 and a debt-to-equity ratio of 0.52.

Harley-Davidson (NYSE:HOG - Get Free Report) last posted 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 quarter last year, the company posted ($0.93) EPS. Harley-Davidson's revenue for the quarter was down 9.8% compared to the same quarter last year. Research analysts forecast that Harley-Davidson will post 3.44 earnings per share for the current fiscal year.

Insider Activity at Harley-Davidson

In related news, Director James D. Farley, Jr. sold 6,454 shares of the firm's stock in a transaction that occurred 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 of the company's stock, valued at $303,195.55. This trade represents a 28.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Rafeh Masood acquired 2,775 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The stock was purchased at an average price of $18.00 per share, with a total value of $49,950.00. Following the completion of the acquisition, the director 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 SEC filing for this purchase provides additional information. 0.93% of the stock is owned by company insiders.

Institutional Trading of Harley-Davidson

A number of institutional investors and hedge funds have recently modified their holdings of HOG. Donald Smith & CO. Inc. lifted its holdings in shares of Harley-Davidson by 61.8% during the second quarter. Donald Smith & CO. Inc. now owns 5,517,795 shares of the company's stock valued at $130,220,000 after purchasing an additional 2,108,099 shares in the last quarter. Norges Bank purchased a new position in Harley-Davidson in the 4th quarter worth about $25,766,000. SG Americas Securities LLC raised its position in Harley-Davidson by 1,277.0% in the 4th quarter. SG Americas Securities LLC now owns 1,094,119 shares of the company's stock worth $22,418,000 after buying an additional 1,014,660 shares during the last quarter. Vanguard Group Inc. lifted its stake in Harley-Davidson by 7.3% during the 3rd quarter. Vanguard Group Inc. now owns 12,958,561 shares of the company's stock valued at $361,544,000 after acquiring an additional 886,998 shares during the period. Finally, Voloridge Investment Management LLC bought a new position in Harley-Davidson during the 3rd quarter valued at about $21,761,000. Institutional investors own 85.10% of the company's stock.

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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