Champion Homes (NYSE:SKY) Stock Price Up 5.4% - Still a Buy?

Key Points

• Champion Homes shares rose 5.4% to approximately $85.43 in mid-day trading, though trading volume was 57% below the average session volume.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $102.75; recent ratings included a Barclays target increase to $109 and an RBC reduction to $94.
• The company slightly beat quarterly expectations, reporting $0.88 EPS versus $0.87 expected and revenue of $710.23 million versus $701.98 million, while two directors recently sold shares and insiders own just 0.60% of the company.

Champion Homes, Inc. (NYSE:SKY - Get Free Report) was up 5.4% during mid-day trading on Friday. The stock traded as high as $85.97 and last traded at $85.4320. Approximately 291,857 shares changed hands during mid-day trading, a decline of 57% from the average session volume of 676,360 shares. The stock had previously closed at $81.05.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Barclays increased their price target on shares of Champion Homes from $102.00 to $109.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Oppenheimer initiated coverage on Champion Homes in a research note on Wednesday, September 30th. They set a "market perform" rating on the stock. Zacks Research raised shares of Champion Homes from a "strong sell" rating to a "hold" rating in a research report on Monday, July 27th. Royal Bank Of Canada decreased their price target on shares of Champion Homes from $99.00 to $94.00 and set an "outperform" rating for the company in a report on Thursday, October 15th. Finally, Zelman & Associates upgraded Champion Homes from a "hold" rating to an "outperform" rating in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $102.75.

Champion Homes Stock Up 3.0%

The company has a debt-to-equity ratio of 0.01, a current ratio of 2.74 and a quick ratio of 1.97. The company has a market cap of $4.53 billion, a PE ratio of 24.38 and a beta of 1.02. The business's 50 day moving average is $84.08 and its 200-day moving average is $82.60.

Champion Homes (NYSE:SKY - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.87 by $0.01. The firm had revenue of $710.23 million during the quarter, compared to the consensus estimate of $701.98 million. Champion Homes had a return on equity of 12.52% and a net margin of 7.16%. The firm's quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.19 earnings per share. As a group, analysts predict that Champion Homes, Inc. will post 3.40 EPS for the current year.

Insider Activity

In related news, Director Erin Helgren sold 1,100 shares of Champion Homes stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $95.00, for a total value of $104,500.00. Following the sale, the director directly owned 8,196 shares in the company, valued at $778,620. The trade was a 11.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Michael B. Berman sold 1,500 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $93.22, for a total transaction of $139,830.00. Following the transaction, the director directly owned 6,825 shares in the company, valued at approximately $636,226.50. This trade represents a 18.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of Champion Homes during the 2nd quarter worth $794,354,000. Wasatch Advisors LP increased its position in Champion Homes by 0.4% in the 2nd quarter. Wasatch Advisors LP now owns 2,747,516 shares of the company's stock worth $242,111,000 after purchasing an additional 10,749 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Champion Homes by 4.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,736,164 shares of the company's stock worth $129,111,000 after purchasing an additional 80,531 shares during the last quarter. Congress Asset Management Co. increased its holdings in shares of Champion Homes by 0.8% during the 3rd quarter. Congress Asset Management Co. now owns 1,222,557 shares of the company's stock valued at $104,773,000 after acquiring an additional 9,597 shares during the last quarter. Finally, Bank of America Corp DE bought a new position in Champion Homes in the 2nd quarter worth $52,406,000.

Champion Homes Company Profile

Champion Homes, Inc NYSE: SKY is a manufacturer of factory-built housing in the United States and Canada. The company designs and produces manufactured homes, modular homes and other residential structures in controlled factory environments, offering housing solutions for individual homeowners, developers, retailers and communities.

Its products include single-section and multi-section manufactured homes, modular homes, accessory dwelling units and park model recreational vehicles. Champion Homes markets its products through independent retailers, company-owned retail operations and other distribution channels, and also provides related construction and installation services in selected markets.

The company traces its heritage to the Skyline and Champion businesses, which combined in 2018 to form Skyline Champion Corporation.

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