Last Updated: 16 Sep 2024
Executive Summary
Harley-Davidson Inc. (HOG) is a leading manufacturer and seller of motorcycles. The company has a strong brand presence and a loyal customer base. However, the company has faced challenges in recent years, including declining sales and increased competition. Despite these challenges, Harley-Davidson remains a financially sound company with a strong balance sheet. The stock is currently trading at $37.74, below its 52-week high of $43.74. Analysts are mixed on the stock, with four rating it a "strong buy," three rating it a "buy," and eight rating it a "hold."
Company Overview
Harley-Davidson was founded in 1903 in Milwaukee, Wisconsin. The company manufactures and sells a wide range of motorcycles, including custom, cruiser, and touring models. Harley-Davidson also sells a variety of motorcycle accessories and apparel. The company has a global presence, with operations in over 100 countries.
Fundamental Analysis
Harley-Davidson's financial performance has been mixed in recent years. The company's revenue has declined in each of the past three years. In 2023, the company's revenue was $5.95 billion, down from $6.28 billion in 2022. The company's net income also declined in 2023, to $502 million from $612 million in 2022.
Despite the decline in revenue and net income, Harley-Davidson remains a financially sound company. The company has a strong balance sheet, with $2.2 billion in cash and equivalents and $1.7 billion in long-term debt. The company also has a strong cash flow, with $1.1 billion in operating cash flow in 2023.
Harley-Davidson's valuation metrics are attractive. The stock is trading at a trailing price-to-earnings ratio of 7.64 and a forward price-to-earnings ratio of 8.14. The stock is also trading at a discount to its 52-week high of $43.74.
Technical Analysis
Harley-Davidson's stock price has been in a downtrend since early 2023. The stock has broken below its 50-day moving average and its 200-day moving average. The stock is currently trading in a support zone between $37 and $38. If the stock breaks below this support zone, it could fall to $35 or lower.
Short Term Outlook
The short-term outlook for Harley-Davidson is mixed. The company's financial performance has been weak in recent quarters, and the stock price has been in a downtrend. However, the stock is trading at a discount to its 52-week high, and the company's valuation metrics are attractive. If the stock can break above its resistance at $39, it could rally to $42 or higher.
Long Term Outlook
The long-term outlook for Harley-Davidson is positive. The company has a strong brand presence and a loyal customer base. The company is also investing in new products and technologies. If the company can execute on its plans, it could return to growth in the coming years.
Analyst Recommendations
Analysts are mixed on Harley-Davidson's stock. Four analysts rate the stock a "strong buy," three rate it a "buy," and eight rate it a "hold." The average analyst target price is $43.13.
