Thor Industries to Buyback $250M Shares; Shares Rise


This article was originally published on TipRanks.com

THOR Industries, Inc. (NYSE: THOR) revealed that its Board has authorized the repurchase of up to $250 million of its common shares untill December 21, 2024.

Thor is a U.S.- based manufacturer of recreational vehicles (RVs) that sells towable and motorized RVs through its subsidiary brands including Airstream, Heartland RV, Jayco, Livin Lite RV, etc. Shares of the company gained 1.3% during the extended trading hours on December 21.

Details

The company plans to exercise share buybacks opportunistically in the near term through open market purchases, privately negotiated transactions, or other ways, subject to the market price of the shares, general market, and economic conditions, and certain other factors.

As a part of Thor’s long-term capital allocation strategy, the company stated that it will continue to make share buybacks, focusing mainly on the reduction of debt related to acquisitions.

In fiscal 2021, THOR Industries returned capital to its shareholders via dividend payments worth $91 million.

Management Weighs In

THOR Industries CEO, Bob Martin, commented, “Our strong earnings growth positions us to drive value back to our shareholders. Given our current stock price, this buyback program offers the best vehicle to accomplish that objective.”

Sharing his views on the undervaluation of the shares at current price levels, he further added, “We believe there is a material misalignment between our value and our stock price. Given our favorable outlook on the industry and in our business, there is no better investment opportunity for THOR than its own shares at the current market price.”

Wall Street’s Take

The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 3 Buys and 2 Holds. The Thor Industries stock prediction of $147.50 implies 48.41% upside potential to current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on Thor stock, compared to a sector average of 70%.

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