Skyline Champion (NYSE:SKY) Shares Gap Down on Disappointing Earnings

Shares of Skyline Champion Co. (NYSE:SKY) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $77.68, but opened at $72.00. Skyline Champion shares last traded at $73.04, with a volume of 71,593 shares changing hands.

The company reported $0.62 earnings per share for the quarter, missing the consensus estimate of $0.67 by ($0.05). The firm had revenue of $536.36 million for the quarter, compared to the consensus estimate of $560.90 million. Skyline Champion had a net margin of 7.24% and a return on equity of 13.50%. Skyline Champion’s revenue for the quarter was up 9.1% on a year-over-year basis. During the same period last year, the company posted $1.00 earnings per share.

Wall Street Analyst Weigh In

SKY has been the topic of several research reports. Wedbush reissued a “neutral” rating and issued a $72.00 price target on shares of Skyline Champion in a research report on Wednesday. Craig Hallum cut their price target on Skyline Champion from $88.00 to $84.00 and set a “buy” rating for the company in a report on Thursday. Royal Bank of Canada decreased their price objective on Skyline Champion from $73.00 to $68.00 and set a “sector perform” rating on the stock in a research note on Thursday. Finally, StockNews.com downgraded Skyline Champion from a “hold” rating to a “sell” rating in a research note on Thursday. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $71.00.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. SummerHaven Investment Management LLC increased its holdings in shares of Skyline Champion by 1.4% in the 4th quarter. SummerHaven Investment Management LLC now owns 10,909 shares of the company’s stock worth $810,000 after buying an additional 150 shares during the last quarter. SkyView Investment Advisors LLC raised its position in Skyline Champion by 3.3% during the third quarter. SkyView Investment Advisors LLC now owns 5,385 shares of the company’s stock valued at $343,000 after purchasing an additional 171 shares in the last quarter. Kestra Private Wealth Services LLC lifted its stake in Skyline Champion by 4.9% during the third quarter. Kestra Private Wealth Services LLC now owns 4,365 shares of the company’s stock worth $278,000 after purchasing an additional 205 shares during the last quarter. Arizona State Retirement System increased its position in shares of Skyline Champion by 1.5% during the 3rd quarter. Arizona State Retirement System now owns 15,454 shares of the company’s stock valued at $985,000 after purchasing an additional 232 shares during the last quarter. Finally, Meritage Portfolio Management raised its holdings in shares of Skyline Champion by 5.4% during the 4th quarter. Meritage Portfolio Management now owns 5,223 shares of the company’s stock valued at $388,000 after buying an additional 269 shares in the last quarter.

Skyline Champion Stock Performance

The firm has a market cap of $4.12 billion, a PE ratio of 28.06 and a beta of 1.54. The company has a 50 day simple moving average of $79.23 and a 200-day simple moving average of $74.01. The company has a debt-to-equity ratio of 0.02, a current ratio of 2.56 and a quick ratio of 1.71.

Skyline Champion Company Profile

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada.