Winnebago Industries (NYSE:WGO) Stock Price Up 6.8% - Should You Buy?

Key Points

• Winnebago shares rose 6.8% to $24.655 during midday trading, although trading volume was down 97% from the stock’s average daily volume.
• Analysts remain cautious, with a consensus “Hold” rating and a $35.67 price target. Ratings include three Buys, eight Holds and one Sell, while several firms recently lowered their targets.
• The company increased its quarterly dividend to $0.36 per share, producing a 5.8% yield, but its 105.88% payout ratio exceeds earnings; insiders have also sold shares under pre-arranged trading plans.

Winnebago Industries, Inc. (NYSE:WGO - Get Free Report)'s share price traded up 6.8% during mid-day trading on Thursday. The stock traded as high as $23.86 and last traded at $24.6550. Approximately 16,676 shares traded hands during mid-day trading, a decline of 97% from the average daily volume of 643,063 shares. The stock had previously closed at $23.09.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Zacks Research upgraded shares of Winnebago Industries from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 1st. Truist Financial reduced their target price 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. BMO Capital Markets decreased their price target on shares of Winnebago Industries from $48.00 to $38.00 and set an "outperform" rating for the company in a research report on Friday, June 26th. KeyCorp reaffirmed a "sector weight" rating on shares of Winnebago Industries in a research note on Friday, June 26th. Finally, Weiss Ratings downgraded shares of Winnebago Industries from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $35.67.

Winnebago Industries Stock Performance

The stock has a 50 day moving average of $28.69 and a 200 day moving average of $29.88. The company has a market capitalization of $704.21 million, a price-to-earnings ratio of 18.35 and a beta of 1.18. The company has a quick ratio of 0.92, a current ratio of 2.37 and a debt-to-equity ratio of 0.36.

Winnebago Industries Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th were issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 5.8%. The ex-dividend date was Wednesday, September 9th. This is a positive change from Winnebago Industries's previous quarterly dividend of $0.35. Winnebago Industries's dividend payout ratio (DPR) is 105.88%.

Insiders Place Their Bets

In related news, SVP Bret A. Woodson sold 1,235 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $31.73, for a total value of $39,186.55. Following the transaction, the senior vice president owned 31,373 shares in the company, valued at $995,465.29. The trade was a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Happe sold 12,045 shares of the company's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $32.68, for a total transaction of $393,630.60. Following the sale, the chief executive officer directly owned 349,349 shares in the company, valued at $11,416,725.32. This trade 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. Over the last ninety days, insiders sold 15,694 shares of company stock worth $511,658. Insiders own 4.88% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC boosted 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 acquiring an additional 565 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in Winnebago Industries by 639.2% in the third quarter. Farther Finance Advisors LLC now owns 9,513 shares of the RV manufacturer's stock worth $251,000 after purchasing an additional 8,226 shares during the period. Versant Capital Management Inc grew its holdings in Winnebago Industries by 365.6% in the third quarter. Versant Capital Management Inc now owns 1,313 shares of the RV manufacturer's stock worth $35,000 after purchasing an additional 1,031 shares during the period. Tidal Investments LLC bought a new stake in Winnebago Industries in the second quarter valued at $558,000. Finally, Squarepoint Ops LLC increased its stake in Winnebago Industries by 181.3% in the second quarter. Squarepoint Ops LLC now owns 113,403 shares of the RV manufacturer's stock valued at $3,543,000 after purchasing an additional 73,084 shares in the last quarter.

Winnebago Industries Company Profile

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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