Zacks Investment Research lowered shares of Winnebago Industries (NYSE:WGO) from a buy rating to a hold rating in a research report report published on Tuesday morning.
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.”
Several other brokerages also recently weighed in on WGO. ValuEngine downgraded shares of Winnebago Industries from a strong-buy rating to a buy rating in a research note on Friday, December 1st. Robert W. Baird increased their target price on shares of Winnebago Industries from $48.00 to $52.00 and gave the company an outperform rating in a research note on Friday, November 3rd. BMO Capital Markets increased their target price on shares of Winnebago Industries to $51.00 and gave the company a market perform rating in a research note on Monday, October 23rd. Stifel Nicolaus downgraded shares of Winnebago Industries from a buy rating to a hold rating and increased their target price for the company from $40.00 to $44.00 in a research note 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 price target on shares of Winnebago Industries in a research note 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 given a buy rating to the company. The company presently has an average rating of Buy and a consensus target price of $46.17.
Shares of Winnebago Industries (NYSE:WGO) traded up $1.80 on Tuesday, hitting $54.05. 540,600 shares of the stock traded hands, compared to its average volume of 513,239. Winnebago Industries has a 1-year low of $24.15 and a 1-year high of $55.90. The stock has a market capitalization of $1,720.00, a P/E ratio of 17.77 and a beta of 2.06. 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 (NYSE:WGO) last announced its earnings results on Thursday, October 19th. The construction company reported $0.79 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.70 by $0.09. Winnebago Industries had a net margin of 4.61% and a return on equity of 21.92%. The business had revenue of $454.90 million for the quarter, compared to the consensus estimate of $444.50 million. During the same quarter in the prior year, the firm posted $0.49 earnings per share. The business’s revenue for the quarter was up 72.8% on a year-over-year basis. sell-side analysts forecast that Winnebago Industries will post 2.88 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Wednesday, November 29th. Investors of record on Wednesday, November 15th were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 0.74%. The ex-dividend date was Tuesday, November 14th. Winnebago Industries’s dividend payout ratio is presently 17.39%.
Winnebago Industries declared that its board has approved a stock buyback program on Thursday, October 19th that authorizes the company to repurchase $70.00 million in outstanding shares. This repurchase authorization authorizes the construction company to reacquire shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.
A number of hedge funds have recently bought and sold shares of the stock. Pinebridge Investments L.P. increased its stake in Winnebago Industries by 1.0% in the 2nd quarter. Pinebridge Investments L.P. now owns 3,496 shares of the construction company’s stock worth $123,000 after buying an additional 35 shares during the period. Texas Permanent School Fund increased its stake in Winnebago Industries by 0.8% in the 2nd quarter. Texas Permanent School Fund now owns 19,371 shares of the construction company’s stock worth $678,000 after buying an additional 163 shares during the period. Victory Capital Management Inc. increased its stake in Winnebago Industries by 17.6% in the 2nd quarter. Victory Capital Management Inc. now owns 3,582 shares of the construction company’s stock worth $125,000 after buying an additional 536 shares during the period. Aperio Group LLC increased its stake in Winnebago Industries by 3.6% in the 2nd quarter. Aperio Group LLC now owns 16,825 shares of the construction company’s stock worth $589,000 after buying an additional 589 shares during the period. Finally, Thrivent Financial For Lutherans increased its stake in Winnebago Industries by 6.1% in the 2nd quarter. Thrivent Financial For Lutherans now owns 15,940 shares of the construction company’s stock worth $558,000 after buying an additional 920 shares during the period. 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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