Winnebago Industries (NYSE:WGO) Shares Gap Up Following Earnings Beat

Key Points

• Winnebago Industries shares jumped 7% after the RV manufacturer reported quarterly EPS of $0.49, exceeding expectations; the stock opened at $24.77 versus a prior close of $23.17.
• The company raised its quarterly dividend from $0.35 to $0.36, implying an annualized dividend of $1.44 and a yield of approximately 5.8%.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $35.67 after several firms reduced their targets; insiders also sold shares under pre-arranged trading plans.

Winnebago Industries, Inc. (NYSE:WGO - Get Free Report)'s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $23.17, but opened at $24.77. Winnebago Industries shares last traded at $24.7150, with a volume of 194,890 shares.

The RV manufacturer reported $0.49 EPS for the quarter. Winnebago Industries had a return on equity of 4.65% and a net margin of 1.36%.

Winnebago Industries Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 23rd. Stockholders of record on Wednesday, September 9th were issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date was Wednesday, September 9th. This is an increase from Winnebago Industries's previous quarterly dividend of $0.35. Winnebago Industries's dividend payout ratio (DPR) is currently 105.88%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on WGO. BMO Capital Markets decreased their target price on Winnebago Industries from $48.00 to $38.00 and set an "outperform" rating for the company in a research note on Friday, June 26th. Benchmark dropped their price target on shares of Winnebago Industries from $48.00 to $40.00 and set a "buy" rating on the stock in a research note on Tuesday, June 23rd. Truist Financial cut their price objective on shares of Winnebago Industries from $43.00 to $35.00 and set a "buy" rating on the stock in a report on Wednesday, July 8th. Weiss Ratings downgraded shares of Winnebago Industries from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, October 14th. Finally, Roth Capital reduced their price objective on shares of Winnebago Industries from $38.00 to $32.00 and set a "neutral" rating for the company in a research report on Tuesday, June 23rd. Three research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $35.67.

Insider Buying and Selling

In other Winnebago Industries news, SVP Bret Woodson sold 2,414 shares of Winnebago Industries stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $32.66, for a total transaction of $78,841.24. Following the transaction, the senior vice president owned 31,274 shares of the company's stock, valued at $1,021,408.84. The trade was a 7.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Happe sold 12,045 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $32.68, for a total value of $393,630.60. Following the completion of the sale, the chief executive officer owned 349,349 shares of the company's stock, valued at approximately $11,416,725.32. This represents a 3.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 15,694 shares of company stock worth $511,658 in the last 90 days. 4.88% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Winnebago Industries

A number of institutional investors have recently modified their holdings of WGO. Pzena Investment Management LLC acquired a new position in Winnebago Industries in the 2nd quarter valued at about $53,406,000. Dimensional Fund Advisors LP raised its stake in Winnebago Industries by 8.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,580,068 shares of the RV manufacturer's stock valued at $48,968,000 after acquiring an additional 129,228 shares during the last quarter. Maple Rock Capital Partners Inc. raised its stake in Winnebago Industries by 33.3% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 1,559,231 shares of the RV manufacturer's stock valued at $48,710,000 after acquiring an additional 389,400 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Winnebago Industries by 72.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 664,638 shares of the RV manufacturer's stock worth $20,597,000 after acquiring an additional 280,017 shares during the period. Finally, Deprince Race & Zollo Inc. lifted its position in Winnebago Industries by 300.6% during the 1st quarter. Deprince Race & Zollo Inc. now owns 573,448 shares of the RV manufacturer's stock worth $17,771,000 after acquiring an additional 430,300 shares during the period.

Winnebago Industries Stock Up 7.0%

The business has a 50-day simple moving average of $28.02 and a two-hundred day simple moving average of $29.68. The company has a market capitalization of $701.15 million, a price-to-earnings ratio of 18.26 and a beta of 1.18. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.92 and a current ratio of 2.37.

About Winnebago Industries

Winnebago Industries, Inc is a manufacturer of recreational vehicles and marine products. The company designs and produces motorhomes, travel trailers, fifth-wheel trailers and other towable recreational vehicles sold under brands including Winnebago, Grand Design, Newmar and other affiliated names.

Through its marine businesses, Winnebago also manufactures recreational boats under brands such as Chris-Craft and Barletta. Its products are distributed primarily through independent dealers and serve consumers seeking travel, outdoor recreation and leisure-oriented transportation.

Founded in 1958 and based in Forest City, Iowa, the company has expanded from its original motorhome business into a broader recreational products organization.

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