SKY Should I Buy
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Champion Homes Inc (SKY) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the stock has shown positive technical indicators and a recent SwingMax signal, the financial performance is weak, analysts' ratings are mixed, and hedge funds are selling. Additionally, the options data indicates a bearish sentiment, and there are no recent positive news catalysts.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram (0.772), which indicates upward momentum. However, the RSI at 72.423 is in the neutral zone, suggesting no clear overbought or oversold conditions. Key resistance levels are at R1: 91.949 and R2: 96.612, with the stock currently trading near R1.
SwingMax sent an entry signal on 2026-02-04, and the stock has gained 5.43% since then. Technical indicators like MACD and moving averages are bullish.
Hedge funds are selling heavily, with a 103.22% increase in selling over the last quarter. Analysts have mixed ratings, with some downgrades and cautious outlooks due to housing affordability challenges and sector volatility. Financial performance in Q3 2026 shows declining net income (-11.70% YoY), EPS (-8.49% YoY), and gross margin (-6.59% YoY). Options data reflects bearish sentiment.
In Q3 2026, revenue increased by 1.81% YoY to $656.6M, but net income dropped by 11.70% YoY to $54.3M. EPS declined by 8.49% YoY to 0.97, and gross margin fell by 6.59% YoY to 26.22%. Overall, financial performance is weak, with declining profitability metrics.
Analysts have mixed views. RBC Capital raised the price target to $101 and maintained an Outperform rating, while Zelman downgraded the stock to Neutral with a price target of $82. Barclays upgraded the stock to Overweight with a $100 price target but highlighted risks in the housing market and sector volatility.
