Harley-Davidson (NYSE:HOG) Shares Gap Up on Better-Than-Expected Earnings

Harley-Davidson, Inc. (NYSE:HOG) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $29.00, but opened at $31.75. Harley-Davidson shares last traded at $35.18, with a volume of 301,468 shares changing hands.

The company reported $1.05 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.77. Harley-Davidson had a net margin of 1.72% and a return on equity of 9.55%. The firm had revenue of $964.03 million for the quarter, compared to analyst estimates of $853.71 million. During the same period last year, the firm posted $0.70 EPS. Harley-Davidson’s quarterly revenue was down 9.8% on a year-over-year basis.

The business also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Friday, December 4th will be given a dividend of $0.02 per share. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $0.08 annualized dividend and a dividend yield of 0.24%. Harley-Davidson’s payout ratio is currently 2.38%.

Several research firms have recently issued reports on HOG. UBS Group raised Harley-Davidson from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $24.00 to $31.00 in a research note on Wednesday, July 15th. Citigroup began coverage on shares of Harley-Davidson in a research note on Monday, July 6th. They set a “buy” rating and a $33.00 price objective for the company. BMO Capital Markets upgraded Harley-Davidson from a “market perform” rating to an “outperform” rating and boosted their target price for the stock from $23.00 to $33.00 in a report on Tuesday, July 14th. DA Davidson boosted their target price on Harley-Davidson from $33.00 to $39.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Stifel Nicolaus boosted their target price on Harley-Davidson from $28.00 to $35.00 and gave the stock a “hold” rating in a report on Wednesday. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and nine have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $33.94.

Several large investors have recently added to or reduced their stakes in the stock. Parkside Financial Bank & Trust boosted its position in shares of Harley-Davidson by 46.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,989 shares of the company’s stock valued at $48,000 after purchasing an additional 634 shares during the period. World Asset Management Inc raised its stake in shares of Harley-Davidson by 10.2% during the 2nd quarter. World Asset Management Inc now owns 11,026 shares of the company’s stock worth $262,000 after purchasing an additional 1,018 shares in the last quarter. Captrust Financial Advisors purchased a new stake in shares of Harley-Davidson during the 2nd quarter worth about $30,000. Harel Insurance Investments & Financial Services Ltd. bought a new position in shares of Harley-Davidson in the 3rd quarter valued at approximately $41,000. Finally, Ensign Peak Advisors Inc grew its holdings in Harley-Davidson by 2.7% in the 2nd quarter. Ensign Peak Advisors Inc now owns 68,830 shares of the company’s stock valued at $1,636,000 after buying an additional 1,824 shares during the last quarter. Institutional investors and hedge funds own 87.24% of the company’s stock.

The stock has a market cap of $5.19 billion, a price-to-earnings ratio of 69.10, a price-to-earnings-growth ratio of 6.87 and a beta of 1.52. The stock has a fifty day simple moving average of $27.06 and a 200-day simple moving average of $25.17. The company has a current ratio of 1.46, a quick ratio of 1.37 and a debt-to-equity ratio of 4.00.

About Harley-Davidson (NYSE:HOG)

Harley-Davidson, Inc manufactures and sells custom, cruiser, and touring motorcycles. The company operates in two segments, Motorcycles and Related Products and Financial Services. The Motorcycles and Related Products segment designs, manufactures, and sells on-road Harley-Davidson motorcycles, including cruiser, touring, standard, sportbike, and dual models, as well as motorcycle parts, accessories, general merchandise, and related services.

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