Fox Factory (NASDAQ:FOXF) Shares Gap Down - Time to Sell?

Key Points

• Fox Factory shares plunged: The stock opened at $15.00 versus a prior close of $18.50 and last traded near $15.71, below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: Bank of America downgraded the stock to “underperform,” while other firms issued bullish ratings or higher targets. The consensus rating remains “Moderate Buy,” with a $21.25 price target.
• Recent results showed mixed performance: Fox Factory exceeded quarterly EPS and revenue expectations, but revenue declined 4.5% year over year and the company posted a negative net margin of 20.39%.

Fox Factory Holding Corp. (NASDAQ:FOXF - Get Free Report)'s share price gapped down before the market opened on Friday. The stock had previously closed at $18.50, but opened at $15.00. Fox Factory shares last traded at $15.7050, with a volume of 489,147 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Bank of America cut Fox Factory from a "neutral" rating to an "underperform" rating and dropped their price target for the company from $24.00 to $20.00 in a research note on Tuesday, June 30th. Fox Advisors set a $20.00 price target on shares of Fox Factory in a research note on Tuesday, June 30th. Zacks Research raised shares of Fox Factory from a "hold" rating to a "strong-buy" rating in a report on Monday, August 31st. Stifel Nicolaus set a $25.00 price target on shares of Fox Factory in a report on Wednesday, September 30th. Finally, Weiss Ratings upgraded shares of Fox Factory from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, October 6th. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $21.25.

Fox Factory Stock Performance

The company has a debt-to-equity ratio of 0.96, a current ratio of 3.10 and a quick ratio of 1.55. The stock's 50-day moving average price is $19.82 and its 200-day moving average price is $18.36. The company has a market cap of $710.03 million, a P/E ratio of -2.36, a PEG ratio of 0.48 and a beta of 1.41.

Fox Factory (NASDAQ:FOXF - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.19. Fox Factory had a negative net margin of 20.39% and a positive return on equity of 5.57%. The business had revenue of $358.12 million during the quarter, compared to analysts' expectations of $352.94 million. During the same quarter in the previous year, the company earned $0.40 EPS. The business's revenue was down 4.5% on a year-over-year basis. Equities analysts anticipate that Fox Factory Holding Corp. will post 1.60 EPS for the current year.

Institutional Investors Weigh In On Fox Factory

Institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC raised its holdings in Fox Factory by 62.1% in the 3rd quarter. GAMMA Investing LLC now owns 3,802 shares of the company's stock valued at $70,000 after acquiring an additional 1,456 shares in the last quarter. Byrne Asset Management LLC acquired a new stake in shares of Fox Factory during the 3rd quarter worth $156,000. Versant Capital Management Inc grew its holdings in shares of Fox Factory by 49.8% during the 3rd quarter. Versant Capital Management Inc now owns 3,054 shares of the company's stock worth $56,000 after purchasing an additional 1,015 shares in the last quarter. Corient Private Wealth LP grew its holdings in shares of Fox Factory by 11.1% during the 2nd quarter. Corient Private Wealth LP now owns 119,632 shares of the company's stock worth $2,027,000 after purchasing an additional 11,921 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Fox Factory by 6.8% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 68,487 shares of the company's stock worth $1,161,000 after purchasing an additional 4,383 shares during the period.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures and markets performance products for the cycling, powersports and outdoor recreation markets. The company serves consumers, professional athletes and original equipment manufacturers through a portfolio of specialized brands and technologies.

Its products include bicycle suspension systems, forks, shocks, dropper posts, drivetrain and component products, protective equipment, apparel and related accessories. In powersports, Fox Factory offers suspension systems and performance components for motorcycles, off-road vehicles, snowmobiles and other recreational vehicles.

Fox Factory's principal brands have included FOX, FOX Racing, Marzocchi, Race Face, Easton Cycling and Ride Concepts.

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