Thor Stock Hits the Brakes After Earnings, Revenue Beat

The company did express some supply chain concerns for the first half of the year

Deputy Editor
Mar 9, 2021 at 9:35 AM
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The shares of Thor Industries (NYSE:THO) are lower this morning, following the company's fiscal second-quarter results. The recreation vehicle (RV) concern's earnings and revenue both topped analysts' estimates. The company did bring up some supply chain issues that could hamper some growth, though it hopes these will ease by the second half of the year. THO was last seen up 2.1% at $127.33. 

The equity hit a three-year high of $133.98 during yesterday's trading, breaking out from its recent sideways trading contained by the $110 and $130 levels. A little lower down the charts, the 50-day has acted as a net for several pullbacks since November, guiding THO to a 39.9% year-to-date lead. 

Despite this recent growth, analysts are split on the stock, with four calling it a "strong buy" and four saying "hold." There could be room for price-target hikes moving forward though. The 12-month consensus price target of $122.78 is a 5.6% discount to last night's close. 

Meanwhile, short sellers have been hitting the exits at an alarming pace. Short interest dropped 38.5% in the last two reporting periods, though the 4.80 million shares sold short make up a solid 9.1% of the stock's available float, and would take over six days to cover, at THO's average daily pace of trading, leaving plenty of room for a short squeeze, should this pessimism continue to unwind. 

 

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