Harley-Davidson stock hits 52-week low at $23.8 amid sales slump

Harley-Davidson Inc (NYSE:HOG). shares tumbled to a 52-week low of $23.8, reflecting ongoing challenges in the heavyweight motorcycle market. The iconic American manufacturer, currently valued at $2.95 billion, has seen its stock price battered over the past year, with a staggering 1-year change showing a decline of nearly 44%. According to InvestingPro data, the stock trades at a P/E ratio of 6.91 with a substantial free cash flow yield of 29%. The company, known for its loyal customer base and distinctive cruiser bikes, has been grappling with shifting consumer preferences and increased competition, which have significantly impacted sales and investor confidence, with revenue declining 11.13% in the last twelve months. Despite market challenges, Harley-Davidson has maintained dividend payments for 33 consecutive years, demonstrating financial resilience. InvestingPro subscribers have access to 12 additional investment tips and a comprehensive analysis of HOG’s financial health.

In other recent news, Harley-Davidson reported a larger-than-expected loss for the fourth quarter of 2024, with earnings per share at a loss of $0.93, missing analyst estimates of a $0.66 per share loss. Revenue also fell 35% to $688 million, below the $712 million consensus estimate. The company faced a significant 47% decline in its motorcycle segment revenue, with global shipments dropping 53% compared to the previous year. Despite these challenges, Harley-Davidson declared a first-quarter 2025 dividend of $0.18 per share, reflecting its commitment to shareholder returns. Analyst firm DA Davidson maintained a Buy rating with a $31 price target, citing the company’s strategic plans as encouraging, while Citi adjusted its price target to $28, maintaining a neutral stance due to skepticism about Harley-Davidson’s guidance. Citi analysts expressed concerns over the company’s optimistic projections, given the challenging retail environment. Harley-Davidson’s management forecasts for 2025 include flat to down 5% in HDMC revenue and an operating income margin between 7.0% and 8.0%.

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