Winnebago Industries Inc. (WGO) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Winnebago Industries Inc. (NYSE: WGO) stock jumped 3.40% on Thursday to $57.54 against a previous-day closing price of $55.65. With 0.52 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.47 million shares. During the session, the Recreational Vehicles company that operates in wider Consumer Cyclical sector, reached to the highest price of $57.60 whereas the lowest price it dropped to was $54.71. The 52-week range on WGO shows that it touched its highest point at $70.53 and its lowest point at $43.78 during that stretch. It currently has a 1-year price target of $66.75. With its current market cap of 1.79 billion, WGO has annualized dividend of $1.08 while the current yield stands at 1.88%. Beta for the stock currently stands at 1.64.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WGO was down-trending over the past week, with a drop of -1.54%, but this was up by 2.08% over a month. Three-month performance dropped to -10.05% while six-month performance fell -1.29%. The stock gained 29.95% in the past year, while it has gained 9.18% so far this year. A look at the trailing 12-month EPS for WGO yields 9.39 with Next year EPS estimates of 7.69. For the next quarter, that number is 1.84. This implies an EPS growth rate of 43.10% for this year and 0.89% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 38.60%.

Float and Shares Shorts:

At present, 30.50 million WGO shares are outstanding with a float of 28.91 million shares on hand for trading. On Apr 27, 2023, short shares totaled 5.77 million, which was 18.87% higher than short shares on Mar 30, 2023. In addition to Mr. Michael J. Happe as the firm’s CEO, Pres & Director, Mr. Bryan L. Hughes serves as its CFO and Sr. VP of Fin., IT & Strategic Planning.

Institutional Ownership:

Through their ownership of 108.01% of WGO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.44% of WGO, in contrast to 52.49% held by mutual funds. Shares owned by individuals account for 18.81%. As the largest shareholder in WGO with 15.41% of the stake, BlackRock Fund Advisors holds 4,709,650 shares worth 4,709,650. A second-largest stockholder of WGO, The Vanguard Group, Inc., holds 2,346,519 shares, controlling over 7.68% of the firm’s shares. Cooke & Bieler LP is the third largest shareholder in WGO, holding 2,261,947 shares or 7.40% stake. With a 7.26% stake in WGO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 2,217,883 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.96% of WGO stock, is the second-largest Mutual Fund holder. It holds 905,310 shares valued at 52.63 million. iShares Russell 2000 ETF holds 2.07% of the stake in WGO, owning 631,021 shares worth 36.69 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Feb 24, 2023, WGO reported revenue of $1.46B and operating income of $176.72M. The EBITDA in the recently reported quarter was $179.34M and diluted EPS was $3.57.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WGO since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With WGO analysts setting a high price target of $85.00 and a low target of $50.00, the average target price over the next 12 months is $66.25. Based on these targets, WGO could surge 47.72% to reach the target high and fall by -13.1% to reach the target low. Reaching the average price target will result in a growth of 15.14% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded WGO stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 7,210 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 265,990 while 79,723 shares were sold.

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