Zacks Investment Research Lowers Harley-Davidson (NYSE:HOG) to Hold

Harley-Davidson (NYSE:HOG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. They presently have a $39.00 price objective on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 4.90% from the stock’s current price.

According to Zacks, “In sync with long-term growth objectives to optimize product portfolio and expand customer base, Harley-Davidson is focusing on motorcycle models and technologies that better align with market trends. The firm's turnaround plan, dubbed as ‘Rewire’, and the five-year strategic plan ‘Hardwire’ boosts optimism. The company's decision to evolve its original LiveWire motorcycle into a dedicated electric vehicle (EV) brand is set to bolster prospects. However, supply-chain disruption amid microchip shortage is a major headwind, resulting in the rise in commodity prices, which is likely to clip margins. Stretched balance sheet also raises concern. Exorbitant tariffs imposed by the European Union (EU) is also set to pose a competitive disadvantage for Harley-Davidson's products. Thus, the stock warrants a cautious stance.”

Several other research firms have also recently weighed in on HOG. Morgan Stanley lifted their target price on Harley-Davidson from $38.00 to $40.00 and gave the company an “underweight” rating in a research note on Thursday, July 22nd. Tigress Financial reiterated a “buy” rating and set a $56.00 price target on shares of Harley-Davidson in a report on Friday, September 10th. Royal Bank of Canada reduced their price target on Harley-Davidson from $48.00 to $41.00 and set a “sector perform” rating for the company in a report on Thursday, July 22nd. Bank of America reiterated a “buy” rating and set a $70.00 price target on shares of Harley-Davidson in a report on Friday, June 11th. Finally, Wedbush reduced their price target on Harley-Davidson from $60.00 to $54.00 and set an “outperform” rating for the company in a report on Thursday, September 9th. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $48.16.

NYSE:HOG traded up $0.03 during mid-day trading on Tuesday, reaching $37.18. 22,621 shares of the stock were exchanged, compared to its average volume of 2,028,401. The business has a fifty day moving average price of $39.95 and a 200 day moving average price of $42.74. The firm has a market capitalization of $5.72 billion, a PE ratio of 11.75, a PEG ratio of 0.43 and a beta of 1.46. Harley-Davidson has a 1-year low of $22.56 and a 1-year high of $52.06. The company has a current ratio of 1.30, a quick ratio of 1.16 and a debt-to-equity ratio of 2.24.

Harley-Davidson (NYSE:HOG) last released its earnings results on Tuesday, July 20th. The company reported $1.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.17 by $0.24. Harley-Davidson had a return on equity of 29.87% and a net margin of 10.53%. The company had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.38 billion. During the same quarter in the previous year, the business posted ($0.60) EPS. The business’s revenue for the quarter was up 128.9% on a year-over-year basis. On average, sell-side analysts forecast that Harley-Davidson will post 3.52 earnings per share for the current year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Red Door Wealth Management LLC bought a new stake in shares of Harley-Davidson during the second quarter valued at approximately $27,000. FORA Capital LLC bought a new stake in shares of Harley-Davidson during the second quarter valued at approximately $29,000. Newbridge Financial Services Group Inc. bought a new stake in shares of Harley-Davidson during the second quarter valued at approximately $32,000. O Shaughnessy Asset Management LLC increased its position in shares of Harley-Davidson by 207.5% during the first quarter. O Shaughnessy Asset Management LLC now owns 821 shares of the company’s stock valued at $33,000 after purchasing an additional 554 shares during the period. Finally, Berman Capital Advisors LLC increased its position in shares of Harley-Davidson by 55.3% during the first quarter. Berman Capital Advisors LLC now owns 1,132 shares of the company’s stock valued at $45,000 after purchasing an additional 403 shares during the period. Institutional investors and hedge funds own 92.44% of the company’s stock.

Harley-Davidson Company Profile

Harley-Davidson, Inc is engaged in the manufacture and sale of custom, cruiser and touring motorcycles. It operates through the following segments: Motorcycles & Related Products; and Financial Services. The Motorcycles & Related Products segment manufactures, designs, and sells at wholesale on-road Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise, and related services.

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