Holley Inc. (NYSE:HLLY) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Holley has an average analyst rating of “Moderate Buy” from seven brokerages, with a consensus 12-month target price of $4.90. The mix includes four buy ratings, one strong buy, one hold, and one sell.
• The company recently announced a $25 million stock buyback program, which could allow it to repurchase up to 8.2% of outstanding shares. Buybacks are often seen as a sign management believes the stock is undervalued.
• Holley reported Q1 earnings of $0.05 per share, matching expectations, but revenue of $147.33 million came in below forecasts. The stock was trading up 4.2% at $2.62, still well below its 52-week high of $4.48.

Shares of Holley Inc. (NYSE:HLLY - Get Free Report) have received an average rating of "Moderate Buy" from the seven brokerages that are currently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, four have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $4.90.

A number of analysts recently issued reports on HLLY shares. Canaccord Genuity Group restated a "buy" rating and set a $7.00 target price on shares of Holley in a research report on Monday, June 29th. Benchmark cut their price target on Holley from $4.50 to $4.00 and set a "buy" rating for the company in a report on Friday, May 8th. Raymond James Financial set a $4.00 price target on Holley in a research note on Thursday, May 7th. Freedom Capital upgraded Holley to a "strong-buy" rating in a report on Tuesday, July 7th. Finally, Weiss Ratings downgraded Holley from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, June 17th.

Institutional Trading of Holley

Several hedge funds and other institutional investors have recently added to or reduced their stakes in HLLY. State of Alaska Department of Revenue acquired a new position in shares of Holley during the 4th quarter valued at about $35,000. Chicago Partners Investment Group LLC purchased a new stake in Holley in the first quarter valued at approximately $35,000. Schonfeld Strategic Advisors LLC acquired a new position in Holley during the third quarter worth approximately $34,000. Sherbrooke Park Advisers LLC acquired a new position in Holley during the third quarter worth approximately $38,000. Finally, Cerity Partners LLC purchased a new position in Holley during the second quarter worth approximately $25,000. Hedge funds and other institutional investors own 39.70% of the company's stock.

Holley Trading Up 4.2%

Shares of HLLY stock opened at $2.62 on Friday. The company has a market capitalization of $318.83 million, a price-to-earnings ratio of 13.82 and a beta of 1.33. The company has a current ratio of 3.17, a quick ratio of 1.07 and a debt-to-equity ratio of 1.16. The firm has a 50-day moving average price of $2.56 and a 200 day moving average price of $3.21. Holley has a twelve month low of $1.98 and a twelve month high of $4.48.

Holley (NYSE:HLLY - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.05 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.05. The company had revenue of $147.33 million for the quarter, compared to analysts' expectations of $152.06 million. Holley had a net margin of 3.89% and a return on equity of 5.46%. Research analysts forecast that Holley will post 0.31 earnings per share for the current fiscal year.

Holley declared that its board has authorized a stock buyback program on Tuesday, May 26th that allows the company to buyback $25.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 8.2% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

About Holley

Holley Inc is a designer, manufacturer and marketer of high‐performance automotive products for the enthusiast market. Through its portfolio of well‐known brands, the company develops fuel delivery systems, intake manifolds, ignition components, nitrous oxide systems, digital controls and other engine‐dress accessories tailored to both street and competition applications. Holley's products are sold through a network of domestic and international distributors, retailers and directly to professional race teams and hobbyists.

The company's product offerings span mechanical and electronic fuel injection, carburetion, engine management, add‐on power systems and calibration tools.

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