Harley-Davidson (NYSE:HOG) Reaches New 1-Year High – Still a Buy?

Harley-Davidson, Inc. (NYSE:HOG)’s stock price hit a new 52-week high during trading on Thursday. The company traded as high as $31.12 and last traded at $29.8620, with a volume of 458,846 shares. The stock had previously closed at $29.52.

Harley-Davidson News Roundup

Here are the key news stories impacting Harley-Davidson this week:

• Positive Sentiment: Raised guidance and stronger retail demand: Harley-Davidson raised its full-year HDMC motorcycle retail sales and wholesale shipment outlook to 135,500–139,000 units and also increased Harley-Davidson Financial Services guidance. North American retail sales rose 9% year over year, accelerating from 3% growth in the prior quarter. Harley-Davidson Reports Third Quarter Financial Results And Raises HDMC and HDFS Guidance
• Positive Sentiment: Lean dealer inventories and shareholder returns: Dealer inventory of new motorcycles ended the quarter 26% below the prior-year level, potentially supporting pricing and future production discipline. The company returned $110 million to shareholders through $91 million of share repurchases and $19 million of dividends. Harley-Davidson Reports $43 Million Q3 Net Income and Raises 2026 Guidance
• Neutral Sentiment: Mixed operating trends: Global motorcycle shipments fell 8% to 33,616 units and HDMC revenue declined 10% to $964 million, but gross margin improved by 173 basis points to 28.1%. The company attributed lower net income partly to a prior-year gain and changes in its dealer inventory strategy.
• Negative Sentiment: Sharp profit decline and earnings miss: Third-quarter net income attributable to Harley-Davidson fell to $43 million from $377 million a year earlier. Diluted EPS was $0.40, below the $0.44 Zacks consensus estimate and other market estimates near $0.47, while revenue of approximately $1.08 billion was down 19.3% year over year. Harley-Davidson Q3 Earnings and Revenues Miss Estimates

Analysts Set New Price Targets

A number of research firms recently weighed in on HOG. Weiss Ratings raised Harley-Davidson from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, October 23rd. Wall Street Zen raised shares of Harley-Davidson from a “sell” rating to a “hold” rating in a report on Saturday, October 10th. Morgan Stanley reaffirmed an “underweight” rating and set a $19.00 price target on shares of Harley-Davidson in a research report on Monday. Citigroup raised shares of Harley-Davidson from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $31.00 to $33.00 in a report on Monday, October 5th. Finally, Loop Capital upgraded Harley-Davidson from a “hold” rating to a “buy” rating and set a $32.00 price target on the stock in a research report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $28.40.

Harley-Davidson Trading Down 0.9%

The firm has a 50-day moving average of $27.08 and a 200-day moving average of $23.87. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.70 and a current ratio of 1.90. The firm has a market capitalization of $3.04 billion, a P/E ratio of 18.01, a price-to-earnings-growth ratio of 9.52 and a beta of 1.30.

Harley-Davidson (NYSE:HOG) last announced its quarterly earnings results on Thursday, October 29th. The company reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.47 by ($0.07). Harley-Davidson had a net margin of 4.78% and a return on equity of 6.28%. The firm had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.07 billion. During the same period in the previous year, the company earned $3.10 EPS. The company’s quarterly revenue was down 19.3% on a year-over-year basis. On average, equities research analysts anticipate that Harley-Davidson, Inc. will post 0.56 EPS for the current fiscal year.

Harley-Davidson Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th were paid a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend was Tuesday, September 15th. Harley-Davidson’s dividend payout ratio is presently 46.01%.

Insider Transactions at Harley-Davidson

In related news, CAO Gayle Littleton acquired 7,500 shares of the stock in a transaction on Tuesday, August 11th. The stock was acquired at an average price of $26.38 per share, for a total transaction of $197,850.00. Following the completion of the purchase, the chief accounting officer owned 7,500 shares of the company’s stock, valued at $197,850. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Artie Starrs bought 10,000 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was purchased at an average price of $25.89 per share, for a total transaction of $258,900.00. Following the purchase, the chief executive officer owned 25,000 shares of the company’s stock, valued at approximately $647,250. This represents a 66.67% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have purchased 57,500 shares of company stock worth $1,439,550 and have sold 4,667 shares worth $119,423. 0.97% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of Harley-Davidson during the 2nd quarter valued at $249,395,000. Donald Smith & CO. Inc. purchased a new stake in Harley-Davidson in the 2nd quarter worth $226,966,000. Bank of America Corp DE purchased a new stake in Harley-Davidson during the second quarter valued at $45,065,000. Bank of New York Mellon Corp boosted its holdings in shares of Harley-Davidson by 8.4% in the 1st quarter. Bank of New York Mellon Corp now owns 2,110,552 shares of the company’s stock worth $42,675,000 after purchasing an additional 163,762 shares during the period. Finally, Aegis Financial Corp purchased a new position in shares of Harley-Davidson during the 1st quarter worth about $27,681,000. 85.10% of the stock is owned by hedge funds and other institutional investors.

About Harley-Davidson

Harley-Davidson, Inc is a Milwaukee-based company that designs, manufactures and sells heavyweight motorcycles. Its product portfolio includes touring, cruiser, standard and adventure-touring motorcycles sold under the Harley-Davidson brand, as well as electric motorcycles offered through its LiveWire business.

The company also provides motorcycle parts, accessories, apparel and related merchandise. Through Harley-Davidson Financial Services, it offers financing and insurance products to motorcycle dealers and retail customers in supported markets.