Mastercraft Boat (NASDAQ:MCFT) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• MasterCraft reported quarterly EPS of $0.50, beating the $0.44 analyst consensus by $0.06.
• Shares opened at $23.00 after closing at $20.50 and were last trading at $21.65, up about 5.5% on the session.
• Analyst sentiment remains cautious: the consensus rating is “Reduce,” with a $22.75 price target; four analysts rate the stock Hold and two rate it Sell.

Mastercraft Boat Holdings, Inc. (NASDAQ:MCFT - Get Free Report)'s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $20.50, but opened at $23.00. Mastercraft Boat shares last traded at $21.65, with a volume of 18,372 shares changing hands.

The company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.06. Mastercraft Boat had a negative net margin of 0.48% and a positive return on equity of 11.08%.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on MCFT. Truist Financial dropped their price objective on Mastercraft Boat from $28.00 to $22.00 and set a "hold" rating on the stock in a report on Friday, October 23rd. B. Riley Financial reissued a "neutral" rating and issued a $22.00 target price (down from $25.00) on shares of Mastercraft Boat in a report on Wednesday, September 16th. Robert W. Baird reduced their target price on Mastercraft Boat from $30.00 to $26.00 and set a "neutral" rating for the company in a report on Friday, September 11th. Zacks Research lowered shares of Mastercraft Boat from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 15th. Finally, Weiss Ratings cut shares of Mastercraft Boat from a "hold (c)" rating to a "sell (d+)" rating in a research note on Friday, September 11th. Four research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Mastercraft Boat currently has a consensus rating of "Reduce" and a consensus price target of $22.75.

Hedge Funds Weigh In On Mastercraft Boat

Several institutional investors and hedge funds have recently modified their holdings of the company. Legal & General Group Plc acquired a new position in Mastercraft Boat in the 2nd quarter valued at $46,000. Versant Capital Management Inc boosted its holdings in shares of Mastercraft Boat by 196.9% during the third quarter. Versant Capital Management Inc now owns 2,527 shares of the company's stock worth $50,000 after purchasing an additional 1,676 shares during the last quarter. State of Alaska Department of Revenue grew its position in shares of Mastercraft Boat by 56.5% in the third quarter. State of Alaska Department of Revenue now owns 3,543 shares of the company's stock valued at $69,000 after purchasing an additional 1,279 shares during the period. Meeder Asset Management Inc. purchased a new stake in shares of Mastercraft Boat in the second quarter valued at $79,000. Finally, Hennion & Walsh Asset Management Inc. purchased a new stake in shares of Mastercraft Boat in the second quarter valued at $231,000. Hedge funds and other institutional investors own 97.64% of the company's stock.

Mastercraft Boat Stock Up 5.5%

The stock has a market capitalization of $523.64 million, a price-to-earnings ratio of -1,084.21 and a beta of 1.10. The company has a 50 day moving average of $20.52 and a 200 day moving average of $22.49.

About Mastercraft Boat

MasterCraft Boat Holdings, Inc designs, manufactures and sells recreational powerboats. The company serves the premium marine market with boats intended for water sports, cruising, fishing and general leisure use.

Its portfolio has included MasterCraft performance ski and wake boats, Crest pontoon boats and Aviara luxury day boats. MasterCraft boats are known for water-sports features such as wake-shaping systems, while the company's other brands address broader recreational boating needs, including spacious pontoon and luxury day-boat segments.

Founded in 1968, MasterCraft is headquartered in Vonore, Tennessee, and distributes its products through a network of independent dealers in North America and selected international markets.

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