12-month performance: -30% Insider activity: Bullish Buying pattern: Purchases from CEO and CFO Recent news: Announced new strategic plan
Harley-Davidson is a well-known manufacturer of motorcycles. Through its subsidiary Harley-Davidson Motor Company (HDMC) the group manufactures and sells an expansive range of distinctive motorcycles, as well as motorcycle parts, accessories, general merchandise, and related services. HOG is listed on the New York Stock Exchange and currently has a market capitalisation of $3.6 billion.
Harley-Davidson recently advised that, in the wake of the Covid-19 pandemic, it has decided to make “significant changes” to its business, strategy, and operating model. Going forward, the company wants to reduce complexity, sharpen its focus, and improve its profitability and long-term growth prospects and it plans to achieve this by resetting its operating model and focusing on top-priority opportunities. "COVID-19 has dramatically changed our business environment and it is critical we respond with agility to this new reality. The crisis has provided an opportunity to re-evaluate every aspect of our business and strategic plan,” said Jochen Zeitz, CEO and President of Harley-Davidson.
Source: 2iQ Research
What stands out to us about Harley-Davidson is the fact that in mid-May, both CEO Jochen Zeitz and CFO John Olin purchased HOG shares. Combined, these top-level insiders spent a total of around $1.25 million on stock. This represented the largest amount of insider buying at Harley-Davidson in over two years. Zeitz’s purchase of 51,020 shares looks particularly interesting – not only was it worth just under $1 million, but it also boosted his holding by over 50%. We see these insider purchases as a bullish signal. They suggest that management is confident that it can turn the company around.
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* Image by Harley-Davidson homepage
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