Fox Factory (NASDAQ:FOXF) Shares Gap Down on Analyst Downgrade

Fox Factory Holding Corp. (NASDAQ:FOXF)’s share price gapped down prior to trading on Tuesday after Bank of America downgraded the stock from a neutral rating to an underperform rating. The stock had previously closed at $18.09, but opened at $17.20. Bank of America now has a $20.00 price target on the stock. Fox Factory shares last traded at $16.3850, with a volume of 144,065 shares.

FOXF has been the subject of several other reports. Zacks Research raised shares of Fox Factory from a “strong sell” rating to a “hold” rating in a research report on Wednesday, June 3rd. Roth Mkm reissued a “neutral” rating and set a $20.00 price target on shares of Fox Factory in a report on Friday, May 8th. Stifel Nicolaus set a $24.00 price objective on Fox Factory in a report on Thursday, April 16th. Weiss Ratings cut shares of Fox Factory from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, May 11th. Finally, Needham & Company LLC reiterated a “buy” rating on shares of Fox Factory in a research report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Fox Factory has a consensus rating of “Hold” and a consensus target price of $23.20.

Institutional Trading of Fox Factory

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FOXF. RWWM Inc. raised its holdings in shares of Fox Factory by 4.7% in the 1st quarter. RWWM Inc. now owns 5,533,072 shares of the company’s stock valued at $91,074,000 after buying an additional 247,635 shares during the period. Nantahala Capital Management LLC lifted its holdings in Fox Factory by 200.3% during the 4th quarter. Nantahala Capital Management LLC now owns 2,188,300 shares of the company’s stock worth $37,442,000 after buying an additional 1,459,652 shares during the last quarter. Engine Capital Management LP raised its holdings in Fox Factory by 162.3% during the first quarter. Engine Capital Management LP now owns 2,026,230 shares of the company’s stock worth $33,352,000 after purchasing an additional 1,253,808 shares in the last quarter. Estuary Capital Management LP raised its stake in Fox Factory by 15.3% during the 1st quarter. Estuary Capital Management LP now owns 1,815,271 shares of the company’s stock worth $29,879,000 after acquiring an additional 240,512 shares in the last quarter. Finally, State Street Corp lifted its holdings in shares of Fox Factory by 1.4% in the 4th quarter. State Street Corp now owns 1,620,544 shares of the company’s stock valued at $27,728,000 after purchasing an additional 21,914 shares during the last quarter.

Fox Factory Stock Performance

The stock has a 50 day simple moving average of $17.58 and a two-hundred day simple moving average of $17.72. The company has a market cap of $691.80 million, a PE ratio of -2.30, a PEG ratio of 0.65 and a beta of 1.37. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.99 and a quick ratio of 1.52.

Fox Factory (NASDAQ:FOXF) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.09. The company had revenue of $368.66 million for the quarter, compared to the consensus estimate of $351.75 million. Fox Factory had a negative net margin of 20.25% and a positive return on equity of 5.20%. Fox Factory’s revenue for the quarter was up 3.8% on a year-over-year basis. During the same period last year, the firm posted $0.23 EPS. Equities analysts predict that Fox Factory Holding Corp. will post 1.45 EPS for the current year.

About Fox Factory

Fox Factory Holding Corp., headquartered in Duluth, Minnesota, designs, engineers and manufactures high-performance suspension systems, shock absorbers and related components for powersports, light-vehicle and mountain-bike applications. The company’s FOX brand offers a comprehensive portfolio of forks, shocks, coilovers and internal bypass dampers aimed at OEM and aftermarket customers seeking enhanced ride quality, control and durability across off-road vehicles, motorcycles and bicycles.

Founded in 1974 by Bob Fox in California, Fox Factory has expanded its technology base and market reach through strategic acquisitions such as Marzocchi Suspension, DVO Suspension and Walker Evans Racing.