Harley-Davidson (HOG) Rating Lowered to Hold at Zacks Investment Research
Zacks Investment Research lowered shares of Harley-Davidson (NYSE:HOG) from a buy rating to a hold rating in a research note released on Monday.
According to Zacks, “Harley-Davidson’s earnings and revenues beat the Zacks Consensus Estimate in the fourth-quarter of fiscal 2017. Compared to the year-ago figures, both earnings and revenues were higher. The company is focusing to develop electric motorcycles technologies and aims to launch these motorcycles in the next 18 months. Further, in order to expand its international presence, the company is adding new dealerships and launching new products. However, declined worldwide sales and a waning operating margin is a concern. Moreover, it has provided a weak guidance for fiscal 2018. Also, in the last six months, Harley-Davidson’s shares have underperformed the industry it belongs to.”
Several other brokerages have also recently issued reports on HOG. Wells Fargo & Co upgraded Harley-Davidson from a market perform rating to an outperform rating and set a $59.00 price target on the stock in a research report on Monday, January 22nd. Wedbush lowered their price target on Harley-Davidson to $49.00 and set a neutral rating on the stock in a research report on Wednesday, January 10th. Longbow Research cut Harley-Davidson from a neutral rating to an underperform rating in a research report on Wednesday, January 3rd. Stifel Nicolaus reiterated a hold rating and set a $54.00 price target (up from $49.00) on shares of Harley-Davidson in a research report on Wednesday, January 17th. Finally, Goldman Sachs Group cut Harley-Davidson to a hold rating and set a $43.00 price target on the stock. in a research report on Wednesday, January 3rd. Three equities research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and six have given a buy rating to the company’s stock. Harley-Davidson presently has an average rating of Hold and a consensus target price of $52.00.
Harley-Davidson (NYSE:HOG) last issued its quarterly earnings results on Tuesday, January 30th. The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.08. Harley-Davidson had a return on equity of 31.23% and a net margin of 10.62%. The company had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $1.01 billion. During the same period last year, the firm earned $0.27 EPS. The firm’s revenue for the quarter was up 12.2% on a year-over-year basis. sell-side analysts predict that Harley-Davidson will post 3.8 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 2nd. Stockholders of record on Wednesday, February 14th will be paid a dividend of $0.37 per share. The ex-dividend date of this dividend is Tuesday, February 13th. This is a positive change from Harley-Davidson’s previous quarterly dividend of $0.37. This represents a $1.48 annualized dividend and a dividend yield of 3.11%. Harley-Davidson’s dividend payout ratio (DPR) is currently 48.99%.
Harley-Davidson announced that its board has authorized a stock repurchase program on Monday, February 5th that authorizes the company to buyback 15,000,000 shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.
In other news, VP Paul J. Jones sold 870 shares of the firm’s stock in a transaction on Monday, February 5th. The stock was sold at an average price of $47.62, for a total transaction of $41,429.40. Following the completion of the sale, the vice president now directly owns 3,399 shares of the company’s stock, valued at approximately $161,860.38. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.70% of the company’s stock.
Institutional investors have recently modified their holdings of the company. Steward Partners Investment Advisory LLC acquired a new stake in shares of Harley-Davidson in the third quarter worth $166,000. IFG Advisory LLC acquired a new stake in shares of Harley-Davidson in the fourth quarter worth $239,000. Profund Advisors LLC boosted its position in shares of Harley-Davidson by 29.5% in the second quarter. Profund Advisors LLC now owns 5,487 shares of the company’s stock worth $296,000 after buying an additional 1,251 shares during the period. Parametrica Management Ltd acquired a new stake in shares of Harley-Davidson in the third quarter worth $269,000. Finally, IFM Investors Pty Ltd acquired a new stake in shares of Harley-Davidson in the third quarter worth $280,000. 97.11% of the stock is owned by institutional investors and hedge funds.
Harley-Davidson, Inc is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) and the Financial Services. The Motorcycles segment consists of HDMC, which designs, manufactures and sells at wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise and related services.
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