It's More Than Just CFO Departure That Drives Harley-Davidson Stock Down

There has been a decline in Harley-Davidson shares HOG -1.74% in Thursday's trading session, as Wall Street analysts have forecast gloomier sales prospects since Harley-Davidson's chief financial officer left the company.

‍

There has been news that Harley-Davidson (ticker: HOG) is stepping down from its Chief Financial Officer position at the end of the month, according to a release issued on Wednesday evening.

‍

A transition will take place from Goetter, who will become Hasbro's director of finance and treasurer, to David Viney, vice president, and treasurer effective April 28. 

‍

“BofA Securities analyst Robert Ohmes, in an analysis released on Wednesday, believes that this move can be attributed to Goetter's expanded role and compensation opportunities rather than issues at HOG.

‍

Harley-Davidson stock was down 8.5% in response to Harley-Davidson‘s announcement after the market closed Wednesday. As I reported earlier, the decline continued into Thursday, with Harley-Davidson's stock dropping 2.8% to $36.50 in recent trade. Harley-Davidson stock has lost approximately 12% so far this year. 

‍

On the other hand, analysts are more concerned about the company's first-quarter sales, which are due for a report on April 27. The company is scheduled to report its first-quarter financial results on this day as well.

‍

According to Ohmes, U.S. retail unit sales will shatter records for the first time ever this year, as he lowered his previous forecast for a 5% decline to a 12% decline, citing weather challenges, higher interest rates, and tighter credit standards while making the change.

‍

As well, Ohmes reduced his price target for Harley stock from $65 to $55 after previously setting it at $65 (her previous price target was $65), while maintaining a Buy rating because of the "accelerated momentum of the brand and the new management strategy that has led to significant increases in profitability for the units.".

‍

Despite not reiterating its financial guidance for 2023, Ohmes tells Trade Algo that the company is “staying on course” with its strategy despite what was evidently a slower start to the dealer network in the first quarter.

‍

It is also worth noting that UBS analyst Robin Farley was concerned about Harley's retail sales in the first quarter, predicting that sales would decline by nearly 20% at U.S. dealerships. Farley has a Neutral rating on Harley and a price target of $49.

‍

It was announced earlier this year that Harley-Davidson had earned 28 cents per share in the fourth quarter, exceeding the seven cents that analysts surveyed by FactSet had forecast at the time, and its revenue had reached $1.14 billion, well above the $918 million that analysts had expected.

‍