Champion Homes (NYSE:SKY) Shares Up 12.4% on Better-Than-Expected Earnings

Champion Homes, Inc. (NYSE:SKY) shares were up 12.4% on Wednesday following a better than expected earnings announcement. The stock traded as high as $75.73 and last traded at $74.7450. Approximately 132,196 shares were traded during mid-day trading, a decline of 80% from the average daily volume of 667,612 shares. The stock had previously closed at $66.52.

The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.81 by $0.20. Champion Homes had a net margin of 8.50% and a return on equity of 14.35%. The firm had revenue of $684.43 million during the quarter, compared to analyst estimates of $636.96 million. During the same period last year, the firm posted $0.93 earnings per share. Champion Homes’s revenue for the quarter was up 11.0% compared to the same quarter last year.

Analyst Upgrades and Downgrades

SKY has been the subject of a number of analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of Champion Homes in a research report on Wednesday, October 8th. Zacks Research downgraded Champion Homes from a “hold” rating to a “strong sell” rating in a research report on Monday, October 6th. Barclays increased their price objective on shares of Champion Homes from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 7th. Finally, Royal Bank Of Canada lifted their target price on Champion Homes from $82.00 to $85.00 and gave the stock a “sector perform” rating in a research report on Thursday, August 7th. Four investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Champion Homes currently has an average rating of “Reduce” and a consensus price target of $79.50.

Insider Buying and Selling at Champion Homes

In related news, EVP Joseph A. Kimmell sold 1,000 shares of Champion Homes stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $65.24, for a total value of $65,240.00. Following the completion of the sale, the executive vice president directly owned 43,568 shares in the company, valued at $2,842,376.32. The trade was a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 1.20% of the stock is owned by insiders.

Institutional Trading of Champion Homes

Several institutional investors and hedge funds have recently made changes to their positions in SKY. Principal Financial Group Inc. boosted its stake in shares of Champion Homes by 2.3% during the first quarter. Principal Financial Group Inc. now owns 262,811 shares of the company’s stock valued at $24,904,000 after purchasing an additional 5,887 shares in the last quarter. New York State Teachers Retirement System boosted its stake in shares of Champion Homes by 3.4% during the first quarter. New York State Teachers Retirement System now owns 12,300 shares of the company’s stock valued at $1,166,000 after purchasing an additional 400 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Champion Homes by 2.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 698,052 shares of the company’s stock valued at $66,147,000 after purchasing an additional 15,793 shares in the last quarter. 111 Capital bought a new position in shares of Champion Homes during the second quarter valued at approximately $390,000. Finally, Driehaus Capital Management LLC boosted its stake in shares of Champion Homes by 1.9% during the first quarter. Driehaus Capital Management LLC now owns 387,439 shares of the company’s stock valued at $36,714,000 after purchasing an additional 7,178 shares in the last quarter.

Champion Homes Trading Up 11.4%

The stock has a market capitalization of $4.19 billion, a P/E ratio of 19.90 and a beta of 1.16. The company has a quick ratio of 1.59, a current ratio of 2.39 and a debt-to-equity ratio of 0.02. The stock’s 50 day moving average price is $73.29 and its 200-day moving average price is $72.55.

Champion Homes Company Profile

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada.