Zacks Research Downgrades Malibu Boats (NASDAQ:MBUU) to Strong Sell

Key Points

• Malibu Boats has been downgraded from a "hold" rating to a "strong sell" rating by Zacks Research, reflecting analysts' growing concerns about the company's prospects.
• Despite the downgrade, Malibu Boats has reported a 30.4% increase in quarterly revenue year-over-year, generating $207.04 million during the latest quarter.
• Institutional investors hold a significant majority, with 91.35% of Malibu Boats stock owned by these entities, indicating strong institutional confidence in the company.

Malibu Boats (NASDAQ:MBUU - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Thursday,Zacks.com reports.

Separately, DA Davidson started coverage on shares of Malibu Boats in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $33.00 price target for the company. One equities research analyst has rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Malibu Boats currently has a consensus rating of "Hold" and a consensus target price of $36.00.

Malibu Boats Stock Performance

Shares of NASDAQ:MBUU traded down $0.63 during mid-day trading on Thursday, reaching $33.03. The company had a trading volume of 234,112 shares, compared to its average volume of 209,818. The company has a current ratio of 1.63, a quick ratio of 0.58 and a debt-to-equity ratio of 0.03. The firm has a market cap of $635.83 million, a price-to-earnings ratio of 42.90 and a beta of 1.20. The company's 50-day moving average price is $34.63 and its 200-day moving average price is $31.87. Malibu Boats has a one year low of $24.42 and a one year high of $47.82.

Malibu Boats (NASDAQ:MBUU - Get Free Report) last issued its earnings results on Thursday, August 28th. The company reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.02). Malibu Boats had a net margin of 1.84% and a return on equity of 4.93%. The business had revenue of $207.04 million for the quarter, compared to the consensus estimate of $195.28 million. During the same period in the previous year, the firm earned ($0.39) EPS. The company's revenue was up 30.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Malibu Boats will post 1.69 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Creative Planning raised its stake in shares of Malibu Boats by 5.0% during the second quarter. Creative Planning now owns 9,471 shares of the company's stock valued at $297,000 after acquiring an additional 453 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Malibu Boats by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,590 shares of the company's stock valued at $356,000 after acquiring an additional 491 shares during the last quarter. Envestnet Asset Management Inc. raised its stake in shares of Malibu Boats by 2.3% during the second quarter. Envestnet Asset Management Inc. now owns 22,111 shares of the company's stock valued at $693,000 after acquiring an additional 506 shares during the last quarter. BNP Paribas Financial Markets raised its stake in shares of Malibu Boats by 43.3% during the second quarter. BNP Paribas Financial Markets now owns 2,128 shares of the company's stock valued at $67,000 after acquiring an additional 643 shares during the last quarter. Finally, Vident Advisory LLC raised its stake in shares of Malibu Boats by 5.0% during the second quarter. Vident Advisory LLC now owns 14,326 shares of the company's stock valued at $449,000 after acquiring an additional 677 shares during the last quarter. 91.35% of the stock is currently owned by hedge funds and other institutional investors.

Malibu Boats Company Profile

Malibu Boats, Inc designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands.