Harley-Davidson (NYSE:HOG) Reaches New 52-Week High - Here's Why

Key Points

• Harley-Davidson shares reached a new 52-week high of $31.12, driven by raised full-year guidance and stronger North American retail demand, which increased 9% year over year.
• The quarterly results were mixed: global shipments fell 8%, revenue declined 19.3% to about $1.08 billion, and net income dropped to $43 million; EPS of $0.40 also missed analyst expectations.
• Analyst sentiment remains divided, with a consensus “Hold” rating and average price target of $28.40, while the company continues shareholder returns through dividends and buybacks and maintains relatively lean dealer inventories.

Shares of Harley-Davidson, Inc. (NYSE:HOG - Get Free Report) reached a new 52-week high on Thursday. The company traded as high as $31.12 and last traded at $29.8620, with a volume of 458,846 shares traded. The stock had previously closed at $29.52.

Harley-Davidson News Summary

Here are the key news stories impacting Harley-Davidson this week:

• Positive Sentiment: Raised guidance and stronger retail demand: Harley-Davidson raised its full-year HDMC motorcycle retail sales and wholesale shipment outlook to 135,500–139,000 units and also increased Harley-Davidson Financial Services guidance. North American retail sales rose 9% year over year, accelerating from 3% growth in the prior quarter. Harley-Davidson Reports Third Quarter Financial Results And Raises HDMC and HDFS Guidance
• Positive Sentiment: Lean dealer inventories and shareholder returns: Dealer inventory of new motorcycles ended the quarter 26% below the prior-year level, potentially supporting pricing and future production discipline. The company returned $110 million to shareholders through $91 million of share repurchases and $19 million of dividends. Harley-Davidson Reports $43 Million Q3 Net Income and Raises 2026 Guidance
• Neutral Sentiment: Mixed operating trends: Global motorcycle shipments fell 8% to 33,616 units and HDMC revenue declined 10% to $964 million, but gross margin improved by 173 basis points to 28.1%. The company attributed lower net income partly to a prior-year gain and changes in its dealer inventory strategy.
• Negative Sentiment: Sharp profit decline and earnings miss: Third-quarter net income attributable to Harley-Davidson fell to $43 million from $377 million a year earlier. Diluted EPS was $0.40, below the $0.44 Zacks consensus estimate and other market estimates near $0.47, while revenue of approximately $1.08 billion was down 19.3% year over year. Harley-Davidson Q3 Earnings and Revenues Miss Estimates

Wall Street Analyst Weigh In

HOG has been the subject of several recent research reports. Weiss Ratings raised Harley-Davidson from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 23rd. DA Davidson boosted their price objective on Harley-Davidson from $30.00 to $33.00 and gave the stock a "buy" rating in a research note on Monday, August 17th. Loop Capital raised Harley-Davidson from a "hold" rating to a "buy" rating and set a $32.00 price objective for the company in a research note on Monday, July 20th. UBS Group boosted their price target on shares of Harley-Davidson from $26.00 to $28.00 and gave the company a "neutral" rating in a report on Wednesday, September 2nd. Finally, Citigroup upgraded Harley-Davidson from a "neutral" rating to a "buy" rating and upped their target price for the company from $31.00 to $33.00 in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $28.40.

Harley-Davidson Price Performance

The company has a market cap of $3.04 billion, a price-to-earnings ratio of 18.01, a price-to-earnings-growth ratio of 9.52 and a beta of 1.30. The company has a current ratio of 1.90, a quick ratio of 1.70 and a debt-to-equity ratio of 0.36. The company has a fifty day moving average price of $27.08 and a two-hundred day moving average price of $23.87.

Harley-Davidson (NYSE:HOG - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.07). The business had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.07 billion. Harley-Davidson had a return on equity of 6.28% and a net margin of 4.78%. The business's revenue for the quarter was down 19.3% on a year-over-year basis. During the same period last year, the company earned $3.10 EPS. As a group, equities research analysts anticipate that Harley-Davidson, Inc. will post 0.56 EPS for the current fiscal year.

Harley-Davidson Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th were paid a $0.1875 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.75 dividend on an annualized basis and a yield of 2.6%. Harley-Davidson's payout ratio is currently 46.01%.

Insider Activity at Harley-Davidson

In related news, CFO Jonathan R. Root sold 1,559 shares of the firm's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $24.43, for a total value of $38,086.37. Following the transaction, the chief financial officer owned 24,733 shares in the company, valued at $604,227.19. This trade represents a 5.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Daniel J. Nova purchased 40,000 shares of Harley-Davidson stock in a transaction dated Friday, July 31st. The stock was bought at an average price of $24.57 per share, for a total transaction of $982,800.00. Following the completion of the transaction, the director directly owned 47,605 shares in the company, valued at $1,169,654.85. The trade was a 525.97% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders bought 57,500 shares of company stock worth $1,439,550 and sold 4,667 shares worth $119,423. 0.97% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Harley-Davidson

Institutional investors and hedge funds have recently modified their holdings of the business. VIRGINIA RETIREMENT SYSTEMS ET Al grew its stake in shares of Harley-Davidson by 4.0% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 122,400 shares of the company's stock valued at $2,990,000 after buying an additional 4,700 shares in the last quarter. Roman Butler Fullerton & Co. acquired a new position in Harley-Davidson in the 3rd quarter valued at $235,000. RWC Asset Management LLP acquired a new position in shares of Harley-Davidson during the 3rd quarter worth approximately $19,292,000. Root Financial Partners LLC bought a new position in Harley-Davidson during the 3rd quarter worth $37,000. Finally, Nisa Investment Advisors LLC raised its holdings in shares of Harley-Davidson by 3.4% during the 3rd quarter. Nisa Investment Advisors LLC now owns 96,976 shares of the company's stock worth $2,369,000 after buying an additional 3,208 shares in the last quarter. 85.10% of the stock is currently owned by institutional investors and hedge funds.

Harley-Davidson Company Profile

Harley-Davidson, Inc is a Milwaukee-based company that designs, manufactures and sells heavyweight motorcycles. Its product portfolio includes touring, cruiser, standard and adventure-touring motorcycles sold under the Harley-Davidson brand, as well as electric motorcycles offered through its LiveWire business.

The company also provides motorcycle parts, accessories, apparel and related merchandise. Through Harley-Davidson Financial Services, it offers financing and insurance products to motorcycle dealers and retail customers in supported markets.

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