Malibu Boats (NASDAQ:MBUU) Shares Gap Down – Should You Sell?

Malibu Boats, Inc. (NASDAQ:MBUU) shares gapped down prior to trading on Thursday . The stock had previously closed at $34.61, but opened at $31.31. Malibu Boats shares last traded at $32.9190, with a volume of 53,416 shares.

Analysts Set New Price Targets

MBUU has been the subject of several research analyst reports. B. Riley lowered their price objective on Malibu Boats from $33.00 to $30.00 and set a “neutral” rating for the company in a report on Tuesday, November 25th. Truist Financial lifted their price objective on shares of Malibu Boats from $30.00 to $37.00 and gave the stock a “hold” rating in a report on Tuesday, October 28th. Weiss Ratings reiterated a “sell (d)” rating on shares of Malibu Boats in a research note on Monday, December 29th. Loop Capital assumed coverage on Malibu Boats in a research note on Monday, December 22nd. They issued a “buy” rating and a $34.00 target price for the company. Finally, Zacks Research upgraded Malibu Boats from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. One research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $32.80.

Malibu Boats Stock Down 12.2%

The stock has a market cap of $584.10 million, a P/E ratio of 31.37 and a beta of 1.22. The company has a current ratio of 1.63, a quick ratio of 0.68 and a debt-to-equity ratio of 0.04. The stock’s 50-day moving average is $30.65 and its 200-day moving average is $31.47.

Malibu Boats (NASDAQ:MBUU) last posted its quarterly earnings data on Thursday, February 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.03) by $0.01. The business had revenue of $188.62 million during the quarter, compared to analysts’ expectations of $181.96 million. Malibu Boats had a net margin of 2.31% and a return on equity of 5.28%. The business’s revenue was down 5.8% on a year-over-year basis. During the same period last year, the firm posted $0.31 earnings per share. As a group, research analysts anticipate that Malibu Boats, Inc. will post 1.69 earnings per share for the current fiscal year.

Malibu Boats announced that its board has approved a share repurchase program on Friday, December 19th that allows the company to repurchase $70.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 12.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Malibu Boats

Several large investors have recently modified their holdings of MBUU. Twin Lions Management LLC lifted its stake in Malibu Boats by 60.2% in the 2nd quarter. Twin Lions Management LLC now owns 1,080,301 shares of the company’s stock worth $33,857,000 after acquiring an additional 405,838 shares in the last quarter. Cooke & Bieler LP grew its holdings in shares of Malibu Boats by 12.4% during the 3rd quarter. Cooke & Bieler LP now owns 1,544,091 shares of the company’s stock valued at $50,106,000 after acquiring an additional 170,178 shares in the last quarter. Fort Washington Investment Advisors Inc. OH increased its stake in shares of Malibu Boats by 31.6% in the fourth quarter. Fort Washington Investment Advisors Inc. OH now owns 665,373 shares of the company’s stock worth $18,770,000 after acquiring an additional 159,748 shares during the last quarter. Pzena Investment Management LLC boosted its position in Malibu Boats by 8.9% during the second quarter. Pzena Investment Management LLC now owns 1,670,977 shares of the company’s stock valued at $52,368,000 after purchasing an additional 136,138 shares during the last quarter. Finally, Lodge Hill Capital LLC grew its stake in Malibu Boats by 12.7% in the third quarter. Lodge Hill Capital LLC now owns 885,014 shares of the company’s stock valued at $28,719,000 after purchasing an additional 100,000 shares in the last quarter. 91.35% of the stock is owned by institutional investors.

Malibu Boats Company Profile

Malibu Boats, Inc is a leading designer, manufacturer and distributor of performance sport boats for the recreational boating market. The company’s product portfolio includes the premium Malibu® brand and the value-oriented Axis® Wake Research line, as well as Cobalt® boats following its 2020 acquisition. Malibu’s vessels are engineered to serve water-sports enthusiasts, with models optimized for wakeboarding, wakesurfing and waterskiing.

Founded in 1982 by water-sports enthusiast Jack Springer, Malibu Boats is headquartered in Loudon, Tennessee.