Fox Factory (NASDAQ:FOXF) Stock Falls 6.5% – Should You Sell?

Shares of Fox Factory Holding Corp. (NASDAQ:FOXF) dropped 6.5% on Monday. The company traded as low as $15.09 and last traded at $14.9920. 204,809 shares were traded during trading, a decline of 66% from the average daily volume of 599,930 shares. The stock had previously closed at $16.04.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Bank of America cut Fox Factory from a “neutral” rating to an “underperform” rating and reduced their price objective for the company from $24.00 to $20.00 in a research note on Tuesday, June 30th. B. Riley Financial decreased their price objective on Fox Factory from $20.00 to $16.00 and set a “neutral” rating for the company in a report on Monday. Roth Capital reaffirmed a “neutral” rating and set a $17.00 target price on shares of Fox Factory in a research report on Monday. Fox Advisors set a $20.00 target price on Fox Factory in a research report on Tuesday, June 30th. Finally, Zacks Research upgraded Fox Factory from a “hold” rating to a “strong-buy” rating in a report on Monday, August 31st. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $19.60.

Fox Factory Price Performance

The stock has a market cap of $638.44 million, a P/E ratio of -2.13, a P/E/G ratio of 0.41 and a beta of 1.41. The business has a 50 day simple moving average of $19.47 and a 200-day simple moving average of $18.33. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.55 and a current ratio of 3.10.

Fox Factory (NASDAQ:FOXF) last released its earnings results on Thursday, August 6th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.18 by $0.19. Fox Factory had a positive return on equity of 5.57% and a negative net margin of 20.39%. The business had revenue of $358.12 million during the quarter, compared to the consensus estimate of $352.94 million. During the same period last year, the business posted $0.40 earnings per share. The business’s revenue for the quarter was down 4.5% on a year-over-year basis. On average, sell-side analysts forecast that Fox Factory Holding Corp. will post 1.60 EPS for the current year.

Institutional Investors Weigh In On Fox Factory

Several hedge funds have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio purchased a new stake in Fox Factory during the second quarter valued at approximately $41,000. Quantbot Technologies LP bought a new stake in shares of Fox Factory in the 2nd quarter valued at approximately $48,000. Versant Capital Management Inc lifted its stake in shares of Fox Factory by 49.8% in the 3rd quarter. Versant Capital Management Inc now owns 3,054 shares of the company’s stock valued at $56,000 after purchasing an additional 1,015 shares during the last quarter. GAMMA Investing LLC boosted its holdings in shares of Fox Factory by 62.1% in the 3rd quarter. GAMMA Investing LLC now owns 3,802 shares of the company’s stock worth $70,000 after purchasing an additional 1,456 shares during the period. Finally, OP Asset Management Ltd purchased a new position in shares of Fox Factory in the 1st quarter worth approximately $91,000.

Fox Factory Company Profile

Fox Factory Holding Corp. designs, engineers, manufactures and markets performance products for the cycling, powersports and outdoor recreation markets. The company serves consumers, professional athletes and original equipment manufacturers through a portfolio of specialized brands and technologies.

Its products include bicycle suspension systems, forks, shocks, dropper posts, drivetrain and component products, protective equipment, apparel and related accessories. In powersports, Fox Factory offers suspension systems and performance components for motorcycles, off-road vehicles, snowmobiles and other recreational vehicles.

Fox Factory’s principal brands have included FOX, FOX Racing, Marzocchi, Race Face, Easton Cycling and Ride Concepts.