Winnebago Industries (NYSE:WGO) Stock Falls 4.9% - What's Next?

Key Points

• Winnebago shares fell 4.9% to about $22.82 in mid-day trading, with volume down 87% from the average session. The stock is trading below its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but centers on a “Hold” rating, with three Buys, eight Holds and one Sell; the average price target is $35.67, above the current share price.
• The company raised its quarterly dividend to $0.36 per share, implying a 6.4% yield, although its dividend payout ratio is elevated at 105.88%. Insiders sold $511,658 worth of shares during the last quarter under pre-arranged trading plans.

Winnebago Industries, Inc. (NYSE:WGO - Get Free Report)'s share price was down 4.9% during mid-day trading on Monday. The stock traded as low as $22.87 and last traded at $22.8240. Approximately 86,645 shares changed hands during trading, a decline of 87% from the average session volume of 645,400 shares. The stock had previously closed at $24.00.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on WGO shares. KeyCorp reaffirmed a "sector weight" rating on shares of Winnebago Industries in a research note on Friday, June 26th. Weiss Ratings cut shares of Winnebago Industries from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday. Roth Capital cut their price target on shares of Winnebago Industries from $38.00 to $32.00 and set a "neutral" rating for the company in a report on Tuesday, June 23rd. Truist Financial cut their price target on shares of Winnebago Industries from $43.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, July 8th. Finally, Zacks Research raised shares of Winnebago Industries from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 1st. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Winnebago Industries has an average rating of "Hold" and an average target price of $35.67.

Winnebago Industries Trading Down 5.5%

The company has a market cap of $641.00 million, a PE ratio of 16.67 and a beta of 1.18. The company's 50 day simple moving average is $28.40 and its two-hundred day simple moving average is $29.78. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.37 and a quick ratio of 0.92.

Winnebago Industries Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 23rd. Investors of record on Wednesday, September 9th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date of this dividend was Wednesday, September 9th. This is an increase from Winnebago Industries's previous quarterly dividend of $0.35. Winnebago Industries's dividend payout ratio is 105.88%.

Insider Activity at Winnebago Industries

In other Winnebago Industries news, SVP Bret Woodson sold 1,235 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $31.73, for a total value of $39,186.55. Following the sale, the senior vice president owned 31,373 shares of the company's stock, valued at $995,465.29. The trade was a 3.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 directly owned 349,349 shares in the company, valued at approximately $11,416,725.32. The trade was 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 sold a total of 15,694 shares of company stock valued at $511,658 in the last quarter. 4.88% of the stock is owned by insiders.

Hedge Funds Weigh In On Winnebago Industries

Hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC increased its stake in Winnebago Industries by 145.2% during the third quarter. GAMMA Investing LLC now owns 954 shares of the RV manufacturer's stock worth $25,000 after purchasing an additional 565 shares during the period. Allworth Financial LP acquired a new position in shares of Winnebago Industries in the second quarter valued at approximately $33,000. Versant Capital Management Inc increased its stake in Winnebago Industries by 365.6% during the 3rd quarter. Versant Capital Management Inc now owns 1,313 shares of the RV manufacturer's stock worth $35,000 after buying an additional 1,031 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new stake in Winnebago Industries during the 2nd quarter worth approximately $74,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in Winnebago Industries during the 2nd quarter worth approximately $91,000.

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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