Winnebago Industries (WGO) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of Winnebago Industries (NYSE:WGO) from a hold rating to a buy rating in a research note issued to investors on Tuesday morning. The brokerage currently has $65.00 target price on the construction company’s stock.
According to Zacks, “Winnebago has been focusing to increase its production of Class A gas and Class C motorhomes by building new facilities, which will lead to a rise in product demand, in future. The company is well positioned with its industry-leading products and solid balance sheet. Also, its shares repurchase programs and frequent dividend payments will boost its shareholders’ value. Moreover, divesting its non-core operations will help Winnebago to focus on its core operation i.e. recreational vehicles. In the last three months, its shares have outperformed in the industry it belongs to.”
A number of other equities analysts also recently commented on WGO. BMO Capital Markets restated a hold rating and set a $34.00 price objective on shares of Winnebago Industries in a research note on Friday, September 1st. ValuEngine upgraded shares of Winnebago Industries from a buy rating to a strong-buy rating in a research note on Friday, September 1st. Robert W. Baird reiterated a buy rating on shares of Winnebago Industries in a research note on Thursday, September 28th. Stifel Nicolaus downgraded shares of Winnebago Industries from a buy rating to a hold rating and raised their target price for the company from $40.00 to $44.00 in a research note on Tuesday, October 3rd. They noted that the move was a valuation call. Finally, SunTrust Banks reiterated a hold rating and issued a $45.00 target price on shares of Winnebago Industries in a research note on Friday, October 20th. They noted that the move was a valuation call. Three research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $48.17.
Winnebago Industries (NYSE:WGO) last posted its quarterly earnings data on Thursday, October 19th. The construction company reported $0.79 EPS for the quarter, topping the Zacks’ consensus estimate of $0.70 by $0.09. Winnebago Industries had a net margin of 4.61% and a return on equity of 21.92%. The company had revenue of $454.90 million during the quarter, compared to the consensus estimate of $444.50 million. During the same period in the prior year, the business posted $0.49 EPS. The company’s quarterly revenue was up 72.8% on a year-over-year basis. analysts predict that Winnebago Industries will post 2.88 earnings per share for the current year.
Winnebago Industries declared that its Board of Directors has approved a stock buyback program on Thursday, October 19th that allows the company to buyback $70.00 million in outstanding shares. This buyback authorization allows the construction company to purchase shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 24th. Shareholders of record on Wednesday, January 10th will be issued a $0.10 dividend. The ex-dividend date is Tuesday, January 9th. This represents a $0.40 annualized dividend and a yield of 0.70%. Winnebago Industries’s dividend payout ratio is currently 17.39%.
Several institutional investors and hedge funds have recently made changes to their positions in WGO. JPMorgan Chase & Co. increased its holdings in shares of Winnebago Industries by 794.8% during the third quarter. JPMorgan Chase & Co. now owns 525,726 shares of the construction company’s stock worth $23,395,000 after purchasing an additional 466,975 shares during the period. Walthausen & Co. LLC boosted its position in shares of Winnebago Industries by 62.3% during the 2nd quarter. Walthausen & Co. LLC now owns 597,839 shares of the construction company’s stock worth $20,924,000 after acquiring an additional 229,451 shares in the last quarter. BlackRock Inc. boosted its position in shares of Winnebago Industries by 6.5% during the 2nd quarter. BlackRock Inc. now owns 3,426,574 shares of the construction company’s stock worth $119,930,000 after acquiring an additional 210,269 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Winnebago Industries by 42.2% during the 2nd quarter. Goldman Sachs Group Inc. now owns 678,538 shares of the construction company’s stock worth $23,749,000 after acquiring an additional 201,355 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of Winnebago Industries by 9.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,846,289 shares of the construction company’s stock worth $64,620,000 after acquiring an additional 157,772 shares in the last quarter. 82.85% of the stock is currently owned by institutional investors.
Winnebago Industries Company Profile
Winnebago Industries, Inc is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles.
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