Winnebago Industries (NYSE:WGO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Winnebago has been focusing to increase its production of Class A gas and Class C motorhomes by building new facilities, which will lead to a rise in product demand, in future. The company’ shares repurchase programs and frequent dividend payments will boost its shareholders’ value. Moreover, in the last three months, its shares have outperformed in the industry it belongs to. However, the company’s debt of $309 million for the acquisition of Grand Design is hampering its liquidity. Further, Winnebago’s challenging Motorized segment and its repurchase agreement to purchase vehicles at a reduced price in case of any default by the dealer are few other problems the company is facing.”
A number of other brokerages have also recently commented on WGO. ValuEngine cut shares of Winnebago Industries from a “strong-buy” rating to a “buy” rating in a report on Friday. Robert W. Baird lifted their target price on shares of Winnebago Industries from $48.00 to $52.00 and gave the company an “outperform” rating in a report on Friday, November 3rd. BMO Capital Markets lifted their target price on shares of Winnebago Industries to $51.00 and gave the company a “market perform” rating in a report on Monday, October 23rd. Stifel Nicolaus cut shares of Winnebago Industries from a “buy” rating to a “hold” rating and lifted their target price for the company from $40.00 to $44.00 in a report on Tuesday, October 3rd. They noted that the move was a valuation call. Finally, SunTrust Banks reaffirmed a “hold” rating and issued a $45.00 target price on shares of Winnebago Industries in a report on Friday, October 20th. They noted that the move was a valuation call. Four investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $46.17.
Winnebago Industries (WGO) traded down $1.75 during mid-day trading on Tuesday, reaching $52.25. 696,100 shares of the company’s stock were exchanged, compared to its average volume of 513,121. The company has a current ratio of 1.88, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Winnebago Industries has a 12 month low of $24.15 and a 12 month high of $55.90. The firm has a market capitalization of $1,717.57, a PE ratio of 18.37 and a beta of 2.06.
Winnebago Industries (NYSE:WGO) last released its quarterly earnings data on Thursday, October 19th. The construction company reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.09. Winnebago Industries had a net margin of 4.61% and a return on equity of 21.92%. The company had revenue of $454.90 million for the quarter, compared to analysts’ expectations of $444.50 million. During the same quarter last year, the company earned $0.49 earnings per share. The firm’s revenue for the quarter was up 72.8% on a year-over-year basis. equities analysts predict that Winnebago Industries will post 2.88 EPS for the current year.
Winnebago Industries declared that its Board of Directors has initiated a stock repurchase plan on Thursday, October 19th that permits the company to repurchase $70.00 million in outstanding shares. This repurchase authorization permits the construction company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its stock is undervalued.
Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. boosted its position in shares of Winnebago Industries by 6.5% during the 2nd quarter. BlackRock Inc. now owns 3,426,574 shares of the construction company’s stock worth $119,930,000 after purchasing an additional 210,269 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Winnebago Industries by 1.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,864,305 shares of the construction company’s stock worth $83,427,000 after purchasing an additional 18,016 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Winnebago Industries by 6.7% during the 2nd quarter. Vanguard Group Inc. now owns 1,567,654 shares of the construction company’s stock worth $54,868,000 after purchasing an additional 97,867 shares in the last quarter. Cooke & Bieler LP boosted its position in shares of Winnebago Industries by 2.4% during the 2nd quarter. Cooke & Bieler LP now owns 1,554,738 shares of the construction company’s stock worth $54,416,000 after purchasing an additional 36,376 shares in the last quarter. Finally, Kennedy Capital Management Inc. boosted its position in shares of Winnebago Industries by 9.5% during the 2nd quarter. Kennedy Capital Management Inc. now owns 1,180,893 shares of the construction company’s stock worth $41,331,000 after purchasing an additional 102,001 shares in the last quarter. 82.99% of the stock is currently owned by institutional investors.
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About Winnebago Industries
Winnebago Industries, Inc is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles.
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