Zacks Investment Research cut shares of Winnebago Industries (NYSE:WGO – Get Rating) from a hold rating to a strong sell rating in a research note released on Wednesday, Zacks.com reports. The brokerage currently has $39.00 price objective on the construction company’s stock.
According to Zacks, “Winnebago is facing hiccups owing to microchip shortage and scarcity of various recreational vehicle (RV) components. Supply chain challenges are restraining Winnebago’s operations from reaching full production capacity. Rising input costs are also taking a toll on the firm's margins. Winnebago expects manufacturing inefficiencies, logistical constraints and inflationary cost input pressures to continue through fiscal 2022. The company is bearing the brunt of escalating operating expenses over the past several quarters and the trend is likely to continue. Further, concerns of economic slowdown triggered by sky-high inflation, rising interest rates and aggravated supply chain snarls might weigh on RV manufacturers like Winnebago. As such, Winnebago is not viewed as a safe bet and should be avoided. “
Several other brokerages have also issued reports on WGO. Citigroup decreased their target price on Winnebago Industries from $74.00 to $67.00 and set a buy rating for the company in a research report on Tuesday, April 19th. StockNews.com began coverage on Winnebago Industries in a research report on Thursday, March 31st. They set a hold rating for the company. Truist Financial decreased their target price on Winnebago Industries from $85.00 to $80.00 and set a buy rating for the company in a research report on Thursday, March 24th. BMO Capital Markets decreased their target price on Winnebago Industries from $95.00 to $85.00 in a research report on Monday, May 16th. Finally, DA Davidson lowered Winnebago Industries from a buy rating to a neutral rating and set a $52.00 target price for the company. in a research report on Thursday, May 19th. One research analyst has rated the stock with a sell rating, four have given a hold rating, six have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of Buy and a consensus target price of $73.00.
Winnebago Industries (NYSE:WGO – Get Rating) last released its quarterly earnings results on Wednesday, March 23rd. The construction company reported $3.14 EPS for the quarter, beating analysts’ consensus estimates of $3.06 by $0.08. The business had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.10 billion. Winnebago Industries had a return on equity of 35.21% and a net margin of 8.02%. Winnebago Industries’s quarterly revenue was up 38.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.12 EPS. As a group, sell-side analysts predict that Winnebago Industries will post 12.4 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 29th. Shareholders of record on Wednesday, June 8th will be paid a $0.18 dividend. The ex-dividend date is Tuesday, June 7th. This represents a $0.72 annualized dividend and a yield of 1.45%. Winnebago Industries’s dividend payout ratio is currently 7.14%.
Hedge funds and other institutional investors have recently modified their holdings of the business. Point72 Hong Kong Ltd bought a new position in Winnebago Industries in the 4th quarter worth about $34,000. C M Bidwell & Associates Ltd. boosted its stake in Winnebago Industries by 1,487.5% in the 1st quarter. C M Bidwell & Associates Ltd. now owns 635 shares of the construction company’s stock worth $34,000 after purchasing an additional 595 shares during the period. Advisors Asset Management Inc. boosted its stake in Winnebago Industries by 71.8% in the 1st quarter. Advisors Asset Management Inc. now owns 622 shares of the construction company’s stock worth $34,000 after purchasing an additional 260 shares during the period. Islay Capital Management LLC bought a new position in Winnebago Industries in the 1st quarter worth about $84,000. Finally, Whittier Trust Co. bought a new position in Winnebago Industries in the 4th quarter worth about $99,000. Institutional investors and hedge funds own 94.86% of the company’s stock.
About Winnebago Industries (Get Rating)
Winnebago Industries, Inc manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates in six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine, and Winnebago Specialty Vehicles.
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