Malibu Boats (NASDAQ:MBUU) Shares Down 7.7% – What’s Next?

Malibu Boats, Inc. (NASDAQ:MBUU)’s stock price dropped 7.7% during mid-day trading on Monday . The stock traded as low as $26.71 and last traded at $26.8290. Approximately 74,578 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 197,659 shares. The stock had previously closed at $29.06.

Analysts Set New Price Targets

Several brokerages have recently commented on MBUU. Weiss Ratings reiterated a “sell (d)” rating on shares of Malibu Boats in a research note on Monday, December 29th. Loop Capital initiated coverage on shares of Malibu Boats in a research report on Monday, December 22nd. They set a “buy” rating and a $34.00 price objective for the company. Zacks Research raised shares of Malibu Boats from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. B. Riley Financial reduced their target price on shares of Malibu Boats from $33.00 to $30.00 and set a “neutral” rating for the company in a report on Tuesday, November 25th. Finally, Griffin Securities set a $30.00 price objective on shares of Malibu Boats in a research report on Tuesday. One investment analyst has rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $32.33.

Malibu Boats Stock Performance

The stock’s 50-day simple moving average is $31.26 and its 200-day simple moving average is $30.93. The stock has a market cap of $522.29 million, a price-to-earnings ratio of 38.47 and a beta of 1.22. The company has a current ratio of 1.56, a quick ratio of 0.49 and a debt-to-equity ratio of 0.04.

Malibu Boats (NASDAQ:MBUU) last issued its quarterly earnings results on Thursday, February 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.03) by $0.01. Malibu Boats had a return on equity of 4.25% and a net margin of 1.76%.The business had revenue of $188.62 million during the quarter, compared to analysts’ expectations of $181.96 million. During the same period in the previous year, the company posted $0.31 earnings per share. The firm’s revenue for the quarter was down 5.8% compared to the same quarter last year. Analysts forecast that Malibu Boats, Inc. will post 1.69 earnings per share for the current fiscal year.

Malibu Boats announced that its Board of Directors has initiated a share repurchase program on Friday, December 19th that permits the company to buyback $70.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 12.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Institutional Trading of Malibu Boats

A number of institutional investors and hedge funds have recently made changes to their positions in MBUU. Invesco Ltd. increased its stake in Malibu Boats by 0.8% in the fourth quarter. Invesco Ltd. now owns 53,074 shares of the company’s stock valued at $1,497,000 after acquiring an additional 432 shares during the last quarter. Corient Private Wealth LLC acquired a new stake in shares of Malibu Boats in the 4th quarter valued at $365,000. XTX Topco Ltd acquired a new stake in shares of Malibu Boats in the 4th quarter valued at $718,000. Wellington Management Group LLP increased its stake in shares of Malibu Boats by 27.1% in the 4th quarter. Wellington Management Group LLP now owns 1,688,099 shares of the company’s stock valued at $47,621,000 after purchasing an additional 359,550 shares during the last quarter. Finally, Janus Henderson Group PLC raised its holdings in shares of Malibu Boats by 5.5% during the 4th quarter. Janus Henderson Group PLC now owns 438,163 shares of the company’s stock worth $12,360,000 after buying an additional 23,012 shares in the last quarter. Institutional investors own 91.35% of the company’s stock.

About Malibu Boats

Malibu Boats, Inc is a leading designer, manufacturer and distributor of performance sport boats for the recreational boating market. The company’s product portfolio includes the premium Malibu® brand and the value-oriented Axis® Wake Research line, as well as Cobalt® boats following its 2020 acquisition. Malibu’s vessels are engineered to serve water-sports enthusiasts, with models optimized for wakeboarding, wakesurfing and waterskiing.

Founded in 1982 by water-sports enthusiast Jack Springer, Malibu Boats is headquartered in Loudon, Tennessee.