Pembroke Management LTD, an institutional investor operating in the stock market, has made a decision that has caught the attention of stakeholders which recently came to light. According to their most recent Form 13F filing with the SEC, it appears that they have decreased their holdings in Fox Factory Holding Corp. (NASDAQ:FOXF) by 1.4%. This announcement raises eyebrows as investors are curious about the rationale behind such action taken.
As per Pembroke Management’s filings with the SEC at current close of trade, the entity had ownership worth $8,011,000 having sold 1,253 shares during this period resulting in owning approximately 0.21% of Fox Factory’s overall shareholding value in question.
Since late February, there has been growing speculation and buzz stirring among investors ever since Fox Factory released its quarterly earnings’ report. The earnings results beating analysts’ expectations sent shock waves across Wall Street with a surge experienced on its NASDAQ stock exchange ticket indicating a positive trend for several trading days following announcement.
Fox Factory is best known for designing and manufacturing ride dynamics products which include bicycles of all variants among others -performance-oriented vehicles for off-road traffics- trucks as well as motorcycles to name a few. Their latest quarterly earnings report revealed that they had a high-performing quarter reporting $1.43 earnings per share. This exceeded analysts’ estimates by $0.21 while yielding a net margin of 12.81% coupled with an impressive return on equity with figures coming in at an admirable figure of 22.55%.
The same quarterly earnings report states that their revenue surpassed expectations by posting at $408.60 million against analysts’ estimations pegged at $383.86 million proving to be healthy competition to those able to measure up especially taking into consideration growth rate from the same preceding year where EPS came in at $1.06 as opposed to currently recording figures posted earlier despite facing challenging times at the peak of COVID.
In conclusion, Pembroke’s decision to sell shares in Fox Factory Holding Corporation has raised questions among industry analysts and experts alike. However, despite this minor setback, one thing is clear: Fox Factory is an industry player that deserves attention from investors as it continues to follow a high-growth trajectory. With its innovative products and solutions in the ride dynamics sector, they are well poised to increase profitability even amidst challenging market conditions. It will be interesting to see how the stock moves in future trading sessions and what the next move of institutional investors like Pembroke Management will be.
Investment Outlook for Fox Factory Holding Corp
Fox Factory Holding Corp, a company specialized in the design, engineering, manufacturing and marketing of performance ride dynamics products, has recently seen changes to its positions with regards to institutional investors and hedge funds. FORA Capital LLC invested $272,000 in Fox Factory during Q3 2016, while Vestmark Advisory Solutions Inc. increased its position by 13.3% during Q4 2016 with an additional 817 shares now valued at $634,000. Quantamental Technologies LLC also increased its position by 23.2% during Q3 2016 with an additional 909 shares values at $381,000. In addition to the aforementioned investors, Allspring Global Investments Holdings LLC grew its position in Fox Factory by 1.2% in Q4 valued at $18.8 million dollars after purchasing an additional 2,341 shares while Valmark Advisers Inc. grew its position by 26.1% during Q3 valued at $475,000 with an additional purchase of 1,244 shares.
Despite the interest from these investors and hedge funds however Fox Factory’s stock traded down on Friday from a high point of $127.54 since rebounding last year from a low of $69.28 in the previous year . Trading volume was relatively low at just over 15 thousand shares compared to its average daily trading volume for this period which stood at nearly 206 thousand shares.”
The reality of Fox Factory is that it offers bikes which cater to off-road capabilities providing vehicles that are dynamic and versatile and can handle extreme terrain .The company provides a wide range of off-road vehicles inclusive of snowmobiles,trucks all -terrain vehicles,specialty vehicles,affecting applications and motor cycles as part of their product range .
On Friday January 27th CEO Michael C Dennison sold approximately 7 thousand five hundred shares bringing cash earning generated from the sale around $862,500.00 , adding to the $7.21 million value of his holding of 62,701 shares.
There has been some commentary however from a variety of research analysts with conflicting opinions on how Fox Factory will fare in the near future. Jefferies Financial Group reduced their target price for Fox Factory shares from $145 to $135 and stated to investors that the company was worth buying into . However, Robert W Baird lifted their price target for Fox Factory shares from $100.00 to $120.00 but gave the stock a “neutral” rating meaning it’s not favoured as an immediate buy by all investors . TheStreet however upgraded the shares from a “c+” rating which many analysts considered weak to a “b” rating implying that although not exceptional it is still an investment prospect , while newly established research firm Roth Mkm recently classified Fox Factory as having a neutral rating with a consensus target price of around $126 per share.
Bear in mind that institutional investors own 98.71% of the company’s total stock, so there may be scope for further developments in terms of expansion or acquisitions that might boost investor interest and build up more confidence in trading scenarios around this organization moving forward.