Zacks Investment Research downgraded shares of Harley-Davidson (NYSE:HOG) from a buy rating to a hold rating in a report published on Thursday.

According to Zacks, “The Zacks Consensus Estimate for Harley-Davidson’s quarterly earnings have been going down of late. The company aims to launch 100 new motorcycles and anticipates an increase of 50% in yearly volume by 2027. Additionally, it is working toward improving its international reach. The company is making long-term investments to expand product portfolio. In March, the company announced that it invested in Alta Motors and both would team up to develop electric motorcycle technology while focusing on product developments. This is in sync with Harley-Davidson’s plan to launch electric motorcycles by 2019. However, declining worldwide sales and waning operating margin are concerns before the company. Moreover, Harley-Davidson maintained weak guidance for fiscal 2018. Also, in a year’s time, the company’s shares have underperformed the industry it belongs to.”

HOG has been the subject of a number of other research reports. ValuEngine lowered Harley-Davidson from a sell rating to a strong sell rating in a research note on Wednesday, May 2nd. Longbow Research raised Harley-Davidson from an underperform rating to a neutral rating in a research report on Thursday, March 29th. Citigroup lowered their price objective on Harley-Davidson from $57.00 to $55.00 and set a buy rating for the company in a research report on Tuesday, February 6th. Stifel Nicolaus lowered their price objective on Harley-Davidson from $49.00 to $45.00 and set a hold rating for the company in a research report on Friday, April 13th. Finally, Sanford C. Bernstein lowered their price objective on Harley-Davidson from $52.00 to $45.00 and set a market perform rating for the company in a research report on Monday, March 26th. Three equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have assigned a buy rating to the company. Harley-Davidson has an average rating of Hold and a consensus target price of $50.31.

Shares of HOG stock opened at $42.31 on Thursday. Harley-Davidson has a 52 week low of $39.34 and a 52 week high of $56.95. The firm has a market capitalization of $7.04 billion, a P/E ratio of 11.56, a price-to-earnings-growth ratio of 1.36 and a beta of 0.89. The company has a quick ratio of 0.96, a current ratio of 1.11 and a debt-to-equity ratio of 2.06.

Harley-Davidson (NYSE:HOG) last announced its quarterly earnings results on Tuesday, April 24th. The company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $1.08 by $0.16. Harley-Davidson had a return on equity of 32.45% and a net margin of 10.31%. The company had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.24 billion. During the same quarter last year, the firm posted $1.05 earnings per share. The firm’s revenue was up 2.7% on a year-over-year basis. sell-side analysts anticipate that Harley-Davidson will post 3.89 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Friday, June 15th. Stockholders of record on Thursday, May 31st will be given a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 3.50%. The ex-dividend date is Wednesday, May 30th. Harley-Davidson’s dividend payout ratio is presently 42.29%.

Harley-Davidson declared that its board has initiated a stock repurchase program on Monday, February 5th that authorizes the company to repurchase 15,000,000 shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Amalgamated Bank raised its position in shares of Harley-Davidson by 7.7% in the 1st quarter. Amalgamated Bank now owns 23,631 shares of the company’s stock worth $1,013,000 after purchasing an additional 1,689 shares during the last quarter. CIBC World Markets Inc. raised its position in shares of Harley-Davidson by 279.9% in the 1st quarter. CIBC World Markets Inc. now owns 27,676 shares of the company’s stock worth $1,187,000 after purchasing an additional 20,391 shares during the last quarter. Banco de Sabadell S.A purchased a new position in shares of Harley-Davidson in the 1st quarter worth about $127,000. Cubist Systematic Strategies LLC purchased a new position in shares of Harley-Davidson in the 1st quarter worth about $296,000. Finally, Guggenheim Capital LLC raised its position in shares of Harley-Davidson by 19.3% in the 1st quarter. Guggenheim Capital LLC now owns 852,739 shares of the company’s stock worth $36,567,000 after purchasing an additional 138,205 shares during the last quarter. 96.22% of the stock is owned by hedge funds and other institutional investors.

About Harley-Davidson

Harley-Davidson, Inc primarily manufactures and sells cruiser and touring motorcycles. The company operates in two segments, Motorcycles & Related Products, and Financial Services. The Motorcycles & Related Products segment 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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