EUR/USD likely to find a peak near 1.25: UBS
Harley-Davidson Inc (NYSE:HOG). shares have descended to a 52-week low, trading at $25.24, as the iconic motorcycle manufacturer grapples with a challenging market environment. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 7.35 with a substantial free cash flow yield of 27%, suggesting potential undervaluation relative to its fundamentals. This latest price level reflects a significant downturn from the company’s performance over the past year, with Harley-Davidson’s stock experiencing a 1-year change decrease of -31.09%. Despite the challenges, management has been actively buying back shares, and the company maintains a 33-year track record of consistent dividend payments. Investors and enthusiasts alike are closely monitoring the company’s strategy and market conditions to see if the beloved brand can rev up its engines and steer back towards growth. For comprehensive analysis of Harley-Davidson’s valuation and growth prospects, access the detailed Pro Research Report available on InvestingPro.
In other recent news, Harley-Davidson has declared a first-quarter cash dividend of $0.18 per share, scheduled for payment on March 14, 2025, to shareholders of record as of February 28, 2025. The announcement underscores the company’s commitment to returning value to its shareholders amidst ongoing market challenges. However, Harley-Davidson reported a wider-than-expected loss for the fourth quarter of 2024, with a loss of $0.93 per share, missing analyst estimates of a $0.66 per share loss. Revenue for the quarter dropped 35% to $688 million, falling short of the $712 million consensus estimate, as the company faced difficulties in the discretionary products market.
Despite these challenges, DA Davidson maintained a Buy rating with a $31 target, citing the company’s strategic plans as a positive development. Meanwhile, Citi adjusted its outlook, cutting the price target to $29 from $31 and maintaining a neutral stance, expressing skepticism about Harley-Davidson’s guidance for 2025. The company’s FY25 guidance anticipates flat to a 5% decline in HDMC revenue, with an operating income margin between 7.0% and 8.0%. Analysts have noted Harley-Davidson’s strategic efforts, such as reducing dealer inventories by 30% in the first half of 2025, as a potential opportunity for investors. The market will continue to watch how these developments align with the company’s financial performance and overall strategy.
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