Harley-Davidson (NYSE:HOG) Stock Jumps 7.8% – What’s Next?

Shares of Harley-Davidson, Inc. (NYSE:HOG) were up 7.8% on Monday. The company traded as high as $26.31 and last traded at $26.4760. Approximately 599,422 shares were traded during trading, a decline of 79% from the average session volume of 2,898,975 shares. The stock had previously closed at $24.55.

Key Stories Impacting Harley-Davidson

Here are the key news stories impacting Harley-Davidson this week:

• Positive Sentiment: Citigroup upgraded HOG to Buy from Neutral and raised its price target to $33 from $31. Citi cited improving retail sales, stronger dealer sentiment and the potential for a “multi-year retail growth story,” providing the primary catalyst for the stock’s advance. Citigroup upgrades Harley-Davidson to Buy from Neutral
• Positive Sentiment: Citi also identified Harley-Davidson’s returning Sportster motorcycle as a possible product catalyst. The analyst view suggests new-model activity could help revive core motorcycle sales after several difficult years. Harley-Davidson Stock Jumps as Citi Bets on a Turnaround
• Neutral Sentiment: The upgrade comes ahead of Harley-Davidson’s third-quarter results, making upcoming retail-sales trends and management commentary important tests of Citi’s turnaround thesis. The consensus rating remains Hold, with an average price target of $28.20, below Citi’s $33 target.
• Neutral Sentiment: CFO Jonathan Root sold 1,559 shares for approximately $38,000. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, and he retained 24,733 shares, limiting the negative signaling from the sale. Harley-Davidson CFO Form 4 Filing

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Citigroup upgraded shares of Harley-Davidson from a “neutral” rating to a “buy” rating and raised their target price for the stock from $31.00 to $33.00 in a report on Monday. Wall Street Zen lowered shares of Harley-Davidson from a “hold” rating to a “sell” rating in a research report on Sunday, September 27th. DA Davidson raised their price objective on shares of Harley-Davidson from $30.00 to $33.00 and gave the stock a “buy” rating in a research note on Monday, August 17th. Wolfe Research restated an “outperform” rating on shares of Harley-Davidson in a research report on Monday, June 15th. Finally, Griffin Securities set a $33.00 target price on Harley-Davidson in a research note on Monday, August 17th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $28.20.

Harley-Davidson Stock Performance

The firm has a market capitalization of $2.80 billion, a P/E ratio of 16.49, a P/E/G ratio of 8.61 and a beta of 1.30. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.90 and a quick ratio of 1.70. The firm has a 50-day moving average price of $26.62 and a two-hundred day moving average price of $24.86.

Harley-Davidson (NYSE:HOG) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.65 by $0.10. Harley-Davidson had a net margin of 4.78% and a return on equity of 6.28%. The company had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the firm posted $0.88 EPS. The firm’s revenue was down 5.9% compared to the same quarter last year. On average, analysts forecast that Harley-Davidson, Inc. will post 0.56 EPS for the current fiscal year.

Harley-Davidson Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th were paid a dividend of $0.1875 per share. This represents a $0.75 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Tuesday, September 15th. Harley-Davidson’s payout ratio is currently 46.01%.

Insider Transactions at Harley-Davidson

In other news, Director Daniel Nova acquired 40,000 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The shares were bought at an average price of $24.57 per share, with a total value of $982,800.00. Following the completion of the purchase, the director directly owned 47,605 shares in the company, valued at $1,169,654.85. This trade represents a 525.97% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Gayle Littleton bought 7,500 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were purchased at an average cost of $26.38 per share, with a total value of $197,850.00. Following the completion of the transaction, the chief accounting officer owned 7,500 shares in the company, valued at $197,850. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 57,500 shares of company stock worth $1,439,550 and have sold 4,667 shares worth $119,423. Company insiders own 0.97% of the company’s stock.

Institutional Trading of Harley-Davidson

A number of hedge funds have recently added to or reduced their stakes in HOG. Norges Bank bought a new stake in Harley-Davidson during the 4th quarter valued at $25,766,000. State of Wyoming purchased a new stake in shares of Harley-Davidson during the 2nd quarter worth $942,000. Robinson Value Management Ltd. bought a new stake in Harley-Davidson during the first quarter valued at about $3,215,000. Jefferies Financial Group Inc. bought a new stake in Harley-Davidson during the second quarter valued at about $992,000. Finally, Sei Investments Co. grew its stake in Harley-Davidson by 100.8% in the first quarter. Sei Investments Co. now owns 228,009 shares of the company’s stock valued at $4,608,000 after purchasing an additional 114,441 shares during the last quarter. 85.10% of the stock is owned by hedge funds and other institutional investors.

Harley-Davidson Company Profile

Harley-Davidson, Inc is a motorcycle manufacturer headquartered in Milwaukee, Wisconsin. Founded in 1903, the company designs, manufactures and sells heavyweight motorcycles known for their cruiser, touring and adventure-touring models, as well as related parts, accessories, apparel and merchandise.

The company markets its products under the Harley-Davidson brand through a network of independent dealers and company-operated retail locations. Its offerings serve customers in the United States and international markets across Europe, Asia-Pacific, Canada and other regions.

Harley-Davidson also provides motorcycle financing and insurance-related services through Harley-Davidson Financial Services.