Growing Through Challenges? – Thor Industries Inc. (THO)

DE Stock
DE Stock

Capital Research & Management Co.. recently announced the acquisition of new stake in Thor Industries Inc. (NYSE:THO). The institutional investor has increased its shareholding in the Consumer Cyclical company by 9.73% to 6.44 million shares with purchase of 0.57 million shares. This fresh investment now brings its stake to 11.67% valued currently at $734.02 million. In addition, JPMorgan Investment Management, I.. raised its holdings by 0.82 million to 2.5 million shares. And Wellington Management Co. LLP has lifted its position by 79.97% or 0.81 million shares – to 1.81 million shares.

With over 1.23 million Thor Industries Inc. (THO) shares trading Tuesday and a closing price of $95.06 on the day, the dollar volume was approximately $117.39 million. The shares have shown a negative weekly performance of -4.92% and its price on 09/01/20 gained nearly 0.67%. Currently, there are 55.20M common shares owned by the public and among those 52.99M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for THO have a consensus price objective of $117.88. The analysts have set the share’s price value over the next 12 months at a high of $140.00 and a low of $98.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Thor Industries Inc. stock is 2.30 for the next 12 months. The average price target is 19.36% above its last price level and an upside to the estimated low will see the stock gain 3.0% over that period. But an upside of 32.1% will see the stock hit the forecast high price target while mean target price for the stock is $120.00.

Insiders at the company have transacted a total of 28 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 14 of these insider trades were purchases, accounting for 130,850 shares. Insider sales of the common stock occurred on 14 occasions, with total insider shares sold totaling 66,349 shares.

The top 3 mutual fund holders in Thor Industries Inc. are American Funds Small Cap World Fu, American Funds AMCAP Fund, and Vanguard Total Stock Market Index. American Funds Small Cap World Fu owns 2.89 million shares of the company’s stock, all valued at over $329.85 million. The company bought an additional 0.25 million shares recently to bring their total holdings to about 5.24% of the shares outstanding. American Funds AMCAP Fund bought 0.1 million shares to see its total holdings expand to 1.75 million shares valued at over $199.68 million and representing 3.17% of the shares outstanding. Vanguard Total Stock Market Index sold 8286.0 shares to bring its total holdings to over 1.49 million shares at a value of $169.72 million. Vanguard Total Stock Market Index now owns shares totaling to 2.70% of the shares outstanding.

Shares of Thor Industries Inc. (NYSE: THO) opened at $93.45, down -$0.98 from a prior closing price of $94.43. However, the script later closed the day at $95.06, up 0.67%. The company’s stock has a 5-day price change of -4.92% and 0.53% over the past three months. THO shares are trading 27.96% year to date (YTD), with the 12-month market performance up to 114.97% higher. It has a 12-month low price of $32.30 and touched a high of $121.33 over the same period. Currently, 1.23 million shares have been traded, compared to an average intraday trading volume of 932.80K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -11.14%, -12.53%, and 18.20% respectively.

Institutional ownership of Thor Industries Inc. (NYSE: THO) shares accounts for 97.60% of the company’s 55.20M shares outstanding. Mutual fund holders own 36.12%, while other institutional holders and individual stakeholders account for 61.33% and 33.00% respectively.

It has a market capitalization of $5.32B and a beta (3y monthly) value of 2.51. The stock’s trailing 12-month PE ratio is 26.82, while the earnings-per-share (ttm) stands at $3.54. The company has a PEG of 4.55 and a Quick Ratio of 1.00 with the debt-to-equity ratio at 0.97. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.62% over the week and 4.43% over the month.

Analysts forecast that Thor Industries Inc. (THO) will achieve an EPS of $1.28 for the current quarter, $1.57 for the next quarter and $5.48 for 2021. The lowest estimate earnings-per-share for the quarter is $1.01 while analysts give the company a high EPS estimate of $1.78. Comparatively, EPS for the current quarter was $1.7 a year ago. Earnings per share for the fiscal year are expected to decrease by -71.40%, and 66.03% over the next financial year. EPS should grow at an annualized rate of 5.90% over the next five years, compared to -5.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Thor Industries Inc. (THO) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 4 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the THO, a number of firms have released research notes about the stock. BofA Securities stated their Neutral rating for the stock in a research note on July 16, 2020, with the firm’s price target at. Citigroup coverage for the Thor Industries Inc. (THO) stock in a research note released on July 06, 2020 offered a Neutral rating with a price target of. Wolfe Research was of a view on April 17, 2020 that the stock is Outperform, while Northcoast gave the stock Neutral rating on April 08, 2020, issuing a price target of. KeyBanc Capital Markets on their part issued Overweight rating on January 27, 2020.


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