Harley-Davidson (NYSE:HOG) Trading Down 5.7% - Here's Why

Key Points

• Harley-Davidson shares fell 5.7% on Thursday, trading as low as $22.41, with volume well below average.
• The company’s latest quarterly results were mixed: EPS of $0.22 missed expectations, but revenue of $1.17 billion came in above estimates. Revenue still declined 11.7% year over year.
• Analyst sentiment remains cautious overall, with a consensus rating of “Hold” and an average price target of $24.22, even after several recent price-target and rating changes.

Harley-Davidson, Inc. (NYSE:HOG - Get Free Report)'s share price traded down 5.7% on Thursday . The company traded as low as $22.41 and last traded at $22.4950. 802,824 shares were traded during trading, a decline of 77% from the average session volume of 3,447,821 shares. The stock had previously closed at $23.85.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Citigroup raised their price objective on Harley-Davidson from $23.00 to $26.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Weiss Ratings raised shares of Harley-Davidson from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, May 14th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $24.00 price target on shares of Harley-Davidson in a report on Wednesday, February 11th. Zacks Research raised shares of Harley-Davidson from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Finally, Argus raised shares of Harley-Davidson to a "strong-buy" rating in a report on Tuesday, February 17th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $24.22.

Harley-Davidson Trading Down 2.7%

The company has a quick ratio of 1.66, a current ratio of 1.91 and a debt-to-equity ratio of 0.37. The firm has a market cap of $2.44 billion, a P/E ratio of 13.21, a P/E/G ratio of 8.73 and a beta of 1.27. The company's 50 day simple moving average is $21.78 and its 200-day simple moving average is $21.65.

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

Insiders Place Their Bets

In other news, Director Rafeh Masood acquired 2,775 shares of the firm's stock in a transaction on Friday, February 27th. The stock was acquired at an average price of $18.00 per share, with a total value of $49,950.00. Following the completion of the purchase, the director directly owned 7,480 shares in the company, valued at approximately $134,640. This trade represents a 58.98% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul J. Krause sold 1,564 shares of the firm's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $26.00, for a total transaction of $40,664.00. Following the completion of the sale, the insider directly owned 30,012 shares of the company's stock, valued at approximately $780,312. The trade was a 4.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.97% of the stock is owned by insiders.

Institutional Trading of Harley-Davidson

Several institutional investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC lifted its stake in Harley-Davidson by 139.0% in the third quarter. EverSource Wealth Advisors LLC now owns 944 shares of the company's stock worth $26,000 after acquiring an additional 549 shares during the period. Pinnacle Holdings LLC purchased a new stake in Harley-Davidson in the fourth quarter worth about $30,000. Fifth Third Bancorp lifted its stake in Harley-Davidson by 48.9% in the fourth quarter. Fifth Third Bancorp now owns 1,764 shares of the company's stock worth $36,000 after acquiring an additional 579 shares during the period. Geneos Wealth Management Inc. lifted its stake in Harley-Davidson by 153.8% in the first quarter. Geneos Wealth Management Inc. now owns 2,109 shares of the company's stock worth $53,000 after acquiring an additional 1,278 shares during the period. Finally, Bessemer Group Inc. raised its stake in Harley-Davidson by 1,758.9% in the first quarter. Bessemer Group Inc. now owns 2,937 shares of the company's stock worth $59,000 after buying an additional 2,779 shares in the last quarter. Institutional investors own 85.10% of the company's stock.

Harley-Davidson Company Profile

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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