Briggs & Stratton (BGG) Stock Price Down 9.5% on Disappointing Earnings

Briggs & Stratton Co. (NYSE:BGG) shares traded down 9.5% on Friday following a weaker than expected earnings announcement. The stock traded as low as $14.20 and last traded at $14.61. 1,298,243 shares changed hands during trading, an increase of 309% from the average session volume of 317,425 shares. The stock had previously closed at $16.15.

The industrial products company reported ($0.51) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.47) by ($0.04). Briggs & Stratton had a negative net margin of 0.60% and a positive return on equity of 10.13%. The firm had revenue of $279.00 million for the quarter, compared to analysts’ expectations of $297.80 million.

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 3rd. Investors of record on Tuesday, December 18th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 3.83%. The ex-dividend date of this dividend is Monday, December 17th. Briggs & Stratton’s dividend payout ratio (DPR) is 43.41%.



A number of research analysts recently weighed in on the stock. Northcoast Research restated a “buy” rating and set a $25.00 target price on shares of Briggs & Stratton in a research note on Friday, August 17th. ValuEngine cut shares of Briggs & Stratton from a “hold” rating to a “sell” rating in a research note on Wednesday, September 26th. Zacks Investment Research upgraded shares of Briggs & Stratton from a “sell” rating to a “hold” rating in a research note on Tuesday, September 25th. Finally, Sidoti cut shares of Briggs & Stratton from a “buy” rating to a “neutral” rating and set a $17.00 target price on the stock. in a research note on Thursday, July 19th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $24.75.

In other Briggs & Stratton news, insider Todd J. Teske sold 87,398 shares of the business’s stock in a transaction on Thursday, August 23rd. The shares were sold at an average price of $20.91, for a total value of $1,827,492.18. Following the sale, the insider now owns 453,723 shares in the company, valued at approximately $9,487,347.93. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 6.30% of the stock is owned by insiders.

A number of hedge funds have recently made changes to their positions in BGG. Russell Investments Group Ltd. lifted its stake in Briggs & Stratton by 177.6% in the 1st quarter. Russell Investments Group Ltd. now owns 152,565 shares of the industrial products company’s stock worth $3,266,000 after purchasing an additional 97,600 shares in the last quarter. Principal Financial Group Inc. lifted its stake in Briggs & Stratton by 2.5% in the 1st quarter. Principal Financial Group Inc. now owns 328,914 shares of the industrial products company’s stock worth $7,042,000 after purchasing an additional 8,177 shares in the last quarter. Allianz Asset Management GmbH lifted its stake in Briggs & Stratton by 31.0% in the 1st quarter. Allianz Asset Management GmbH now owns 69,138 shares of the industrial products company’s stock worth $1,480,000 after purchasing an additional 16,367 shares in the last quarter. A.R.T. Advisors LLC purchased a new stake in Briggs & Stratton in the 1st quarter worth $252,000. Finally, Millennium Management LLC raised its position in shares of Briggs & Stratton by 637.8% during the 1st quarter. Millennium Management LLC now owns 83,123 shares of the industrial products company’s stock valued at $1,780,000 after buying an additional 71,857 shares in the last quarter. Institutional investors and hedge funds own 81.96% of the company’s stock.

The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.70 and a current ratio of 1.77. The stock has a market cap of $707.03 million, a PE ratio of 11.33 and a beta of 0.65.

Briggs & Stratton Company Profile (NYSE:BGG)

Briggs & Stratton Corporation designs, manufactures, markets, sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers in the United States. It operates in two segments, Engines and Products. The Engines segment offers four-cycle aluminum alloy gasoline engines that are used primarily by the lawn and garden equipment industry.

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