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

Harley-Davidson (NYSE:HOG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks.com reports. They currently have a $39.00 target price on the stock. Zacks Investment Research‘s target price suggests a potential upside of 4.90% from the stock’s previous close.

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.”

Several other research firms also recently commented on HOG. Edward Jones downgraded shares of Harley-Davidson from a “hold” rating to a “sell” rating and set a $39.59 price target for the company. in a research report on Tuesday, July 27th. Wedbush reduced their price target on shares of Harley-Davidson from $60.00 to $54.00 and set an “outperform” rating for the company in a research report on Thursday, September 9th. They noted that the move was a valuation call. Morgan Stanley upped their price target on shares of Harley-Davidson from $38.00 to $40.00 and gave the company an “underweight” rating in a research report on Thursday, July 22nd. Tigress Financial reiterated a “buy” rating and issued a $56.00 price target on shares of Harley-Davidson in a research report on Friday, September 10th. Finally, Royal Bank of Canada cut their price objective on shares of Harley-Davidson from $48.00 to $41.00 and set a “sector perform” rating for the company in a research report on Thursday, July 22nd. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, Harley-Davidson currently has an average rating of “Hold” and a consensus price target of $48.16.

Shares of HOG stock traded up $0.03 during trading on Tuesday, reaching $37.18. The company’s stock had a trading volume of 22,621 shares, compared to its average volume of 2,028,401. The company has a debt-to-equity ratio of 2.24, a current ratio of 1.30 and a quick ratio of 1.16. The company has a market capitalization of $5.72 billion, a price-to-earnings ratio of 11.75, a P/E/G ratio of 0.43 and a beta of 1.46. The stock’s 50-day moving average price is $39.95 and its 200 day moving average price is $42.74. Harley-Davidson has a 1-year low of $22.56 and a 1-year high of $52.06.

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

Hedge funds and other institutional investors have recently modified their holdings of the stock. Red Door Wealth Management LLC acquired a new stake in Harley-Davidson in the 2nd quarter valued at about $27,000. FORA Capital LLC acquired a new stake in Harley-Davidson in the 2nd quarter valued at about $29,000. Newbridge Financial Services Group Inc. acquired a new stake in Harley-Davidson in the 2nd quarter valued at about $32,000. O Shaughnessy Asset Management LLC grew its stake in Harley-Davidson by 207.5% in the 1st quarter. O Shaughnessy Asset Management LLC now owns 821 shares of the company’s stock valued at $33,000 after acquiring an additional 554 shares during the last quarter. Finally, Berman Capital Advisors LLC lifted its holdings in Harley-Davidson by 55.3% in the 1st quarter. Berman Capital Advisors LLC now owns 1,132 shares of the company’s stock valued at $45,000 after purchasing an additional 403 shares in the last quarter. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

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.

Read More: What is the significance of the death cross?

Get a free copy of the Zacks research report on Harley-Davidson (HOG)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Harley-Davidson (NYSE:HOG)

Receive News & Ratings for Harley-Davidson Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Harley-Davidson and related companies with MarketBeat.com's FREE daily email newsletter.