Harley-Davidson (NYSE:HOG) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Harley-Davidson (NYSE:HOG) from a buy rating to a hold rating in a research note released on Tuesday morning, Zacks.com reports. They currently have $39.00 price objective on the stock.

According to Zacks, “In sync with long-term growth objectives to optimize product portfolio and expand customer base, Harley-Davidson is focusing on motorcycle models and technologies that better align with market trends. The firm's turnaround plan, dubbed as ‘Rewire’, and the five-year strategic plan ‘Hardwire’ boosts optimism. The company's decision to evolve its original LiveWire motorcycle into a dedicated electric vehicle (EV) brand is set to bolster prospects. However, supply-chain disruption amid microchip shortage is a major headwind, resulting in the rise in commodity prices, which is likely to clip margins. Stretched balance sheet also raises concern. Exorbitant tariffs imposed by the European Union (EU) is also set to pose a competitive disadvantage for Harley-Davidson's products. Thus, the stock warrants a cautious stance.”

A number of other equities research analysts have also issued reports on HOG. Tigress Financial reaffirmed a buy rating and issued a $56.00 target price on shares of Harley-Davidson in a research note on Friday, September 10th. Bank of America reaffirmed a buy rating and issued a $70.00 target price on shares of Harley-Davidson in a research note on Friday, June 11th. Edward Jones lowered Harley-Davidson from a hold rating to a sell rating and set a $39.59 target price on the stock. in a research note on Tuesday, July 27th. Morgan Stanley upped their target price on Harley-Davidson from $38.00 to $40.00 and gave the company an underweight rating in a research note on Thursday, July 22nd. Finally, Royal Bank of Canada cut their price target on Harley-Davidson from $48.00 to $41.00 and set a sector perform rating for the company in a report on Thursday, July 22nd. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of Hold and an average price target of $48.16.

Shares of NYSE:HOG opened at $36.84 on Tuesday. The business’s 50 day simple moving average is $39.80 and its 200-day simple moving average is $42.75. The firm has a market capitalization of $5.67 billion, a price-to-earnings ratio of 11.66, a price-to-earnings-growth ratio of 0.43 and a beta of 1.46. The company has a debt-to-equity ratio of 2.24, a current ratio of 1.30 and a quick ratio of 1.16. Harley-Davidson has a 12 month low of $22.56 and a 12 month high of $52.06.

Harley-Davidson (NYSE:HOG) last announced its quarterly earnings results on Tuesday, July 20th. The company reported $1.41 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.17 by $0.24. Harley-Davidson had a return on equity of 29.87% and a net margin of 10.53%. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the company earned ($0.60) EPS. The company’s quarterly revenue was up 128.9% on a year-over-year basis. On average, equities analysts anticipate that Harley-Davidson will post 3.52 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, September 24th. Shareholders of record on Friday, September 10th will be paid a $0.15 dividend. The ex-dividend date is Thursday, September 9th. This represents a $0.60 annualized dividend and a dividend yield of 1.63%. Harley-Davidson’s payout ratio is currently 77.92%.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. boosted its holdings in Harley-Davidson by 389.3% during the first quarter. Goldman Sachs Group Inc. now owns 1,280,611 shares of the company’s stock worth $51,352,000 after buying an additional 1,018,883 shares in the last quarter. Brown Advisory Inc. boosted its stake in Harley-Davidson by 201.8% in the 1st quarter. Brown Advisory Inc. now owns 235,743 shares of the company’s stock worth $9,453,000 after purchasing an additional 157,635 shares during the period. Laurion Capital Management LP purchased a new stake in Harley-Davidson in the 1st quarter worth approximately $1,077,000. Capital Fund Management S.A. purchased a new stake in Harley-Davidson in the 1st quarter worth approximately $6,466,000. Finally, Guggenheim Capital LLC lifted its position in Harley-Davidson by 6.1% in the 1st quarter. Guggenheim Capital LLC now owns 36,814 shares of the company’s stock worth $1,476,000 after buying an additional 2,119 shares in the last quarter. Institutional investors and hedge funds own 92.44% of the company’s stock.

Harley-Davidson Company Profile

Harley-Davidson, Inc is engaged in the manufacture and sale of custom, cruiser and touring motorcycles. It operates through the following segments: Motorcycles & Related Products; and Financial Services. The Motorcycles & Related Products segment manufactures, designs, and sells at wholesale on-road Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise, and related services.

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