Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Harley-Davidson Inc (NYSE:HOG). shares have descended to a 52-week low, trading at $28.95, reflecting a challenging period for the iconic motorcycle manufacturer. According to InvestingPro analysis, the stock trades at an attractive P/E ratio of 6.6x while offering a 2.34% dividend yield, though current metrics suggest slight overvaluation. Over the past year, the company's stock has experienced a significant downturn, with a 1-year change showing a decline of 15.05%. This latest price level underscores the headwinds faced by the company amid shifting consumer preferences and a competitive global market. Despite these challenges, InvestingPro data reveals management's confidence through aggressive share buybacks, and the company has maintained dividend payments for an impressive 32 consecutive years. Discover 8 more exclusive ProTips and comprehensive analysis in our Pro Research Report, available with an InvestingPro subscription.
In other recent news, Harley-Davidson has been grappling with several challenges. The company reported a 13% drop in global retail sales and a 26% decrease in consolidated revenue for the third quarter of 2024. Earnings per share also fell by 34% to $0.91. However, the motorcycle manufacturer has maintained its financial stability, declaring a quarterly cash dividend of $0.1725 per share.
In response to these challenges, Harley-Davidson is implementing measures to improve profitability and dealer support, focusing on reducing inventory and cost management. The company plans to reduce dealer inventory by 20% by year-end.
Meanwhile, analysts have been adjusting their outlooks on Harley-Davidson's stock. Baird recently revised the price target for the company's stock to $36 from $40, maintaining a neutral rating due to dealer challenges and a potential decline in U.S. retail sales. Similarly, Citi reduced its price target for Harley-Davidson from $39 to $34, citing high inventory levels and a history of persistent retail sales declines. These are some of the recent developments for Harley-Davidson.
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