Spartan Motors (SPAR) Shares Down 40% Following Weak Earnings

Spartan Motors Inc (NASDAQ:SPAR)’s share price was down 40% during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $6.70 and last traded at $6.73. Approximately 2,522,917 shares traded hands during mid-day trading, an increase of 924% from the average daily volume of 246,436 shares. The stock had previously closed at $11.22.

The company reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.08). Spartan Motors had a return on equity of 10.84% and a net margin of 3.28%. The company had revenue of $226.18 million for the quarter, compared to analysts’ expectations of $227.27 million. During the same quarter last year, the business posted $0.21 EPS. The business’s quarterly revenue was up 19.5% on a year-over-year basis.

A number of analysts recently issued reports on SPAR shares. Craig Hallum set a $12.00 price objective on shares of Spartan Motors and gave the stock a “buy” rating in a report on Wednesday. ValuEngine downgraded shares of Spartan Motors from a “hold” rating to a “sell” rating in a report on Thursday, October 11th. Zacks Investment Research downgraded shares of Spartan Motors from a “buy” rating to a “hold” rating in a report on Thursday, October 4th. Roth Capital decreased their price objective on shares of Spartan Motors from $20.00 to $12.00 and set a “buy” rating for the company in a report on Thursday. Finally, BidaskClub downgraded shares of Spartan Motors from a “sell” rating to a “strong sell” rating in a report on Thursday, July 26th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $14.33.

In related news, insider Stephen K. Guillaume sold 4,144 shares of the firm’s stock in a transaction dated Thursday, September 13th. The shares were sold at an average price of $15.23, for a total transaction of $63,113.12. Following the completion of the sale, the insider now owns 63,429 shares in the company, valued at $966,023.67. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 4.22% of the company’s stock.

Large investors have recently modified their holdings of the business. Strs Ohio boosted its position in Spartan Motors by 9.9% during the second quarter. Strs Ohio now owns 51,100 shares of the company’s stock worth $771,000 after purchasing an additional 4,600 shares during the period. Schwab Charles Investment Management Inc. boosted its position in Spartan Motors by 44.7% during the second quarter. Schwab Charles Investment Management Inc. now owns 99,610 shares of the company’s stock worth $1,505,000 after purchasing an additional 30,765 shares during the period. Hodges Capital Management Inc. bought a new position in Spartan Motors during the third quarter worth about $1,475,000. Macquarie Group Ltd. boosted its position in Spartan Motors by 181.9% during the second quarter. Macquarie Group Ltd. now owns 38,903 shares of the company’s stock worth $587,000 after purchasing an additional 25,103 shares during the period. Finally, BlueMountain Capital Management LLC bought a new position in Spartan Motors during the second quarter worth about $1,312,000. Hedge funds and other institutional investors own 68.33% of the company’s stock.

The company has a current ratio of 1.78, a quick ratio of 1.28 and a debt-to-equity ratio of 0.10. The stock has a market capitalization of $394.85 million, a price-to-earnings ratio of 17.33 and a beta of 0.55.

Spartan Motors Company Profile (NASDAQ:SPAR)

Spartan Motors, Inc, through its subsidiaries, engineers, manufactures, and sells heavy-duty and purpose-built specialty vehicles in the United States, Canada, South America, and Asia. It operates through three segments: Fleet Vehicles and Services, Emergency Response Vehicles, and Specialty Chassis and Vehicles.

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