Assessing Whether Camping World Holdings Inc. (NYSE: CWH) Is Over- Or Undervalued


Wasatch Advisors, Inc. has recently announced that it has increased stake in Camping World Holdings Inc. (NYSE:CWH) by 5.51%. After grabbing 4.12 million shares, the institutional investor is now in possession of 0.22 million shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 10.98% having worth around $150.93 million. Moreover, BlackRock Fund Advisors increased its share by 48078.0 to have a control over 2.04 million shares. And D. E. Shaw & Co. LP raised its holdings to 0.23 million shares by acquiring 1.88 million shares or 5.00% of the stake.

Camping World Holdings Inc. (CWH) concluded trading on 08/27/20 at a closing price of $30.87, with 3.25 million shares of worth about $100.48 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -6.71% during that period and on Thursday the price saw a gain of about 1.25%. Currently the company’s common shares owned by public are about 37.64M shares, out of which, 32.33M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 10 analysts are covering the CWH stock and their offered price forecasts bring an average price target of $37.00. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $50.00 and could fall to a lowest price of $27.00. Analysts also issued an outlook of 2.70 for the Camping World Holdings Inc. stock for next 12 months. The stock’s current price level is 19.82% above of average price target set by the analysts, while a rise to estimated low would result in loss of -14.33 for the stock. However, touching the estimated high of $50.00 would mean a gain of 38.26% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 53 times over the past 12 months. They bought 1,527,181 shares in 45 of the transactions. In 8 selling transactions, insiders dumped 1,034,956 shares.

Wasatch Core Growth Fund, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF are the top 3 mutual funds which are holding stakes in Camping World Holdings Inc. Wasatch Core Growth Fund is currently holding 1.38 million shares of worth totaling $50.36 million. The company recently came buying 0.0 shares which brought its stake up to 3.66% of the company’s outstanding shares. Vanguard Total Stock Market Index sold 1724.0 shares, after which its hold over company’s outstanding shares shrunk to 2.42%, leaving 0.91 million shares with the mutual fund that have a worth of about $33.28 million. iShares Russell 2000 ETF, after selling 0.68 million shares, have now control over 1.80% of the stake in the company. It holds 31654.0 shares of worth $24.75 million.

Camping World Holdings Inc. (NYSE: CWH) started trading at $30.40, below -$0.09 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $30.87, or with a gain of 1.25%. Stock saw a price change of -6.71% in past 5 days and over the past one month there was a price change of -11.34%. Year-to-date (YTD), CWH shares are showing a performance of 112.73% which increased to 320.80% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $3.39 but also hit the highest price of $42.49 during that period. While comparing its average daily trading volume of 2.54 million shares, we see that about 3.25 million changed hands on the day. The stock is currently trading -10.38% below its 20-day simple moving average (SMA20), while that difference is down -3.64% for SMA50 and it goes to 73.10% higher than SMA200.

Wasatch Advisors, Inc. acquired 4.12 million shares of Camping World Holdings Inc. having value of about $150.93 million. Data submitted at the U.S SEC by Wasatch Advisors, Inc. revealed that the firm now holds 0.22 million shares in the company valued at close to $6642421.38, or have control over 5.51% stake in the company. Camping World Holdings Inc. (NYSE: CWH) currently have 37.64M outstanding shares and institutions hold larger chunk of about 94.10% of that. Holding of mutual funds in the company is about 28.04% while other institutional holders and individual stake holders have control over 51.54% and 27.02% of the stake respectively.

The stock has a current market capitalization of $2.70B and its 3Y-monthly beta is at 4.09. It has posted earnings per share of -$0.27 in the same period. It has Quick Ratio of 0.50 while making debt-to-equity ratio of 199.14. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for CWH, volatility over the week remained 7.87% while standing at 8.02% over the month.

Analysts are in expectations that Camping World Holdings Inc. (CWH) stock would likely to be making an EPS of $0.82 in the current quarter, while forecast for next quarter ESPS is $0.07 and it is $2.42 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.26 which is $1.09 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.14 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -685.80% while it is estimated to decrease by -3.68% in next year. EPS is likely to grow at an annualized rate of 36.00% for next 5-years, compared to annual growth of -25.00% made by the stock over the past 5-years.

Analysts at 10 brokerage firms have issued recommendations for the Camping World Holdings Inc. (CWH)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.70. Out of those 10 Wall Street analysts, 2 recommended a “Buy” rating, while 7 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Monness Crespi & Hardt on August 06, 2020 offering a Buy rating for the stock and assigned a target price range of between $33 and $49 to it. Coverage by Monness Crespi & Hardt stated Camping World Holdings Inc. (CWH) stock as a Buy in their note to investors on July 14, 2020, suggesting a price target of $33 for the stock. On June 26, 2020, Monness Crespi & Hardt Reiterated their recommendations, while on June 01, 2020, Monness Crespi & Hardt Reiterated their ratings for the stock with a price target of $24. Stock get a Neutral rating from Northcoast on April 08, 2020.


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