Alberta Investment Management Corp (AIMCo), a prominent institutional investor, has recently recalibrated its investment in Champion Homes, Inc. (NYSE:SKY), a leading factory-built housing manufacturer. According to its latest SEC filing, AIMCo reduced its stake in Champion Homes during the first quarter, signaling a strategic adjustment amidst evolving market conditions.
The firm divested 10,482 shares, resulting in a 22.3% decrease in its position. Despite this reduction, AIMCo retains a substantial holding of 36,502 shares, valued at approximately $3.46 million at the close of the reporting period. This remaining stake represents about 0.06% of Champion Homes’ outstanding stock, indicating AIMCo’s continued, albeit adjusted, presence within the company’s ownership structure.
In contrast to AIMCo’s move, several other major hedge funds and institutional investors demonstrated increased confidence in Champion Homes by boosting their exposure. Capital World Investors significantly expanded its stake by 31.5% in the fourth quarter, acquiring an additional 632,718 shares. This pushed their total to 2,638,862 shares, with an impressive valuation of $232.48 million, underscoring a strong conviction in the company’s long-term prospects from some large-scale investors.
Ameriprise Financial Inc. similarly increased its stake by 17.2% during the same period, purchasing 241,326 more shares to reach 1,646,482 shares, valued at approximately $145.05 million. Other notable increases included Capital Research Global Investors establishing a new position worth nearly $99 million, Congress Asset Management Co. raising its holdings by 8.8%, and Cramer Rosenthal Mcglynn LLC boosting its stake by 19.1%. Collectively, these actions illustrate a diverse range of institutional interest and varied investment approaches towards SKY.
From a market performance perspective, Champion Homes shares recently opened at $64.87, trading within a one-year range of $59.44 to $116.49. The company’s financial health is robust, marked by a low debt-to-equity ratio of 0.02, a current ratio of 2.41, and a quick ratio of 1.61. The stock’s 50-day moving average is $64.92, while its 200-day moving average stands at $82.94. With a market capitalization of $3.72 billion, a price-to-earnings ratio of 18.97, and a beta of 1.13, Champion Homes presents a compelling financial profile.
In a strategic corporate move, Champion Homes’ board authorized a $50 million share repurchase program on May 30th. This program allows the company to buy back up to 1.3% of its outstanding shares through open market purchases. Share buyback authorizations often signal management’s belief that the company’s stock is undervalued, potentially aiming to enhance shareholder value and boost earnings per share over time.
Analyst sentiment regarding SKY has been mixed, reflecting cautious optimism. Royal Bank Of Canada adjusted its price objective to $82.00 from $96.00, maintaining a “sector perform” rating. Zelman & Associates upgraded the stock from a “strong sell” to a “hold,” while Barclays lowered its target price to $72.00 with an “equal weight” rating. The consensus among six equities research analysts is currently a “Hold,” with an average target price of $80.60, indicating a generally neutral outlook from the analyst community on the stock’s immediate future.
Skyline Champion Corporation operates as a leading manufacturer and seller of factory-built housing across North America. Its extensive product portfolio includes manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for multi-family and hospitality sectors. Champion Homes builds under renowned brands such as Skyline Homes, Genesis Homes, and Homes of Merit in the United States, and Moduline and SRI Homes in western Canada, solidifying its position as a key player in the North American housing industry.
