Winnebago Industries (NYSE:WGO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and 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.”
WGO has been the subject of a number of other reports. Robert W. Baird boosted their target price on 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 reissued a “hold” rating and issued a $34.00 target price on shares of Winnebago Industries in a research note on Friday, October 13th. Stifel Nicolaus cut Winnebago Industries from a “buy” rating to a “hold” rating and boosted 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. ValuEngine cut Winnebago Industries from a “strong-buy” rating to a “buy” rating in a research note on Friday, December 1st. Finally, SunTrust Banks restated a “hold” rating and issued a $45.00 price target on shares of Winnebago Industries in a report on Friday, October 20th. They noted that the move was a valuation call. Four equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $46.17.
Winnebago Industries (NYSE:WGO) last posted its earnings results on Thursday, October 19th. The construction company reported $0.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.70 by $0.09. Winnebago Industries had a return on equity of 21.92% and a net margin of 4.61%. The firm had revenue of $454.90 million during the quarter, compared to analysts’ expectations of $444.50 million. During the same period in the previous year, the firm earned $0.49 earnings per share. The company’s revenue was up 72.8% on a year-over-year basis. equities research analysts predict that Winnebago Industries will post 2.88 EPS for the current year.
Winnebago Industries announced that its Board of Directors has approved a share 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. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.
Several institutional investors have recently modified their holdings of the company. BlackRock Inc. lifted its holdings in shares of Winnebago Industries by 6.5% in the second quarter. BlackRock Inc. now owns 3,426,574 shares of the construction company’s stock valued at $119,930,000 after purchasing an additional 210,269 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Winnebago Industries by 1.0% during the third quarter. Dimensional Fund Advisors LP now owns 1,864,305 shares of the construction company’s stock worth $83,427,000 after acquiring an additional 18,016 shares in the last quarter. Vanguard Group Inc. raised its holdings in Winnebago Industries by 6.7% during the second quarter. Vanguard Group Inc. now owns 1,567,654 shares of the construction company’s stock worth $54,868,000 after acquiring an additional 97,867 shares in the last quarter. Cooke & Bieler LP raised its holdings in Winnebago Industries by 2.4% during the second quarter. Cooke & Bieler LP now owns 1,554,738 shares of the construction company’s stock worth $54,416,000 after acquiring an additional 36,376 shares in the last quarter. Finally, Kennedy Capital Management Inc. raised its holdings in Winnebago Industries by 9.5% during the second quarter. Kennedy Capital Management Inc. now owns 1,180,893 shares of the construction company’s stock worth $41,331,000 after acquiring an additional 102,001 shares in the last quarter. Institutional investors own 82.99% of the company’s stock.
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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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