Spartan Motors (SPAR) Trading Down 40% on Disappointing Earnings

Spartan Motors Inc (NASDAQ:SPAR) shares fell 40% on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $6.70 and last traded at $6.73. 2,522,917 shares were traded during trading, an increase of 924% from the average session volume of 246,436 shares. The stock had previously closed at $11.22.

The company reported $0.17 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.25 by ($0.08). The firm had revenue of $226.18 million during the quarter, compared to analysts’ expectations of $227.27 million. Spartan Motors had a return on equity of 10.84% and a net margin of 3.28%. The business’s quarterly revenue was up 19.5% on a year-over-year basis. During the same quarter last year, the business earned $0.21 earnings per share.

A number of research firms have recently issued reports on SPAR. ValuEngine downgraded Spartan Motors from a “sell” rating to a “strong sell” rating in a research note on Thursday. BidaskClub downgraded Spartan Motors from a “sell” rating to a “strong sell” rating in a research report on Thursday, July 26th. Finally, Zacks Investment Research downgraded Spartan Motors from a “buy” rating to a “hold” rating in a research report on Thursday, October 4th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and three have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $19.00.

In related news, insider Stephen K. Guillaume sold 4,144 shares of Spartan Motors stock in a transaction on Thursday, September 13th. The stock was sold at an average price of $15.23, for a total transaction of $63,113.12. Following the transaction, the insider now directly owns 63,429 shares in the company, valued at $966,023.67. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 4.22% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hodges Capital Management Inc. purchased a new position in Spartan Motors during the third quarter valued at $1,475,000. Assenagon Asset Management S.A. purchased a new position in Spartan Motors during the third quarter valued at $3,083,000. First Trust Advisors LP lifted its position in Spartan Motors by 15.5% during the third quarter. First Trust Advisors LP now owns 266,289 shares of the company’s stock valued at $3,928,000 after purchasing an additional 35,759 shares in the last quarter. Kirr Marbach & Co. LLC IN lifted its position in Spartan Motors by 659.1% during the third quarter. Kirr Marbach & Co. LLC IN now owns 227,537 shares of the company’s stock valued at $3,356,000 after purchasing an additional 197,563 shares in the last quarter. Finally, Bank of Montreal Can lifted its position in Spartan Motors by 20.7% during the third quarter. Bank of Montreal Can now owns 99,384 shares of the company’s stock valued at $1,466,000 after purchasing an additional 17,056 shares in the last quarter. Institutional investors own 68.33% of the company’s stock.

The stock has a market cap of $388.51 million, a price-to-earnings ratio of 15.65 and a beta of 0.55. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.78 and a quick ratio of 1.28.

Spartan Motors Company Profile (NASDAQ:SPAR)

Spartan Motors, Inc, through its subsidiaries, engineers, manufactures, and sells heavy-duty and purpose-built specialty vehicles in the United States, Canada, South America, and Asia. It operates through three segments: Fleet Vehicles and Services, Emergency Response Vehicles, and Specialty Chassis and Vehicles.

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