Core Thesis - Harley-Davidson, Inc. is viewed as a deep-value investment opportunity, trading below tangible book value, indicating that the market assigns little value to its strong brand presence in the motorcycle industry [2][3]. Company Overview - Founded in 1903, Harley-Davidson is a key player in American motorcycling culture, known for its strong brand loyalty [3]. - The company's stock is currently trading at $21.25, with trailing and forward P/E ratios of 5.09 and 6.76 respectively [1]. Valuation Insights - The current market valuation suggests that Harley-Davidson's intangible assets, including its brand and financing arm, are being valued at nearly zero, reflecting investor pessimism rather than the company's intrinsic worth [3]. - A sum-of-the-parts analysis indicates that the intrinsic value of Harley-Davidson could approach the low-$30s per share, suggesting a potential upside of over 50% [7]. Challenges Faced - The company's valuation discount is attributed to both self-inflicted challenges, such as past management decisions and a shift in focus towards younger demographics, and external macroeconomic pressures like high interest rates and weak consumer sentiment [4][5]. - Recent leadership changes are aimed at refocusing on core operations and profitability, which may help address these challenges [5]. Strategic Moves - Harley-Davidson's decision to sell a 10% stake in Harley-Davidson Financial Services (HDFS) has raised investor concerns, but this move is seen as a way to de-risk the business while maintaining operational control [6]. - The transaction, which transfers $4 billion of loans off the balance sheet, is expected to bring in institutional investors like KKR and PIMCO, validating the value of HDFS [6].

Imagine at Harley-Davidson it must have been uh unique to have a woman as CFO, right. >> I've had the good fortune in all of the stops I've had along the way where my bosses have prioritized that diversity of of of thought. >> Noticed also that a lot of [music] people who work here seem to also play the games.You know, they live in this culture. And I must that must have been the same at Harley, right. >> At Harley, you're right.I wasn't a rider, but I'm from [music] Milwaukee. Uh, I learned how to ride. An ...

Group 1 - Harley-Davidson (HOG) shares have underperformed over the past year, losing approximately one-third of their value [1] - Despite the overall market reaching record highs, Harley-Davidson shares are currently near a 52-week low, which was observed during the peak of tariff concerns [1]

Core Insights - The motorcycle maker is enhancing the responsibilities of its finance chief and reintroducing a company veteran as chief operating officer, solidifying the leadership team under new CEO Artie Starrs [1] Group 1 - The company is expanding the role of its finance chief, indicating a strategic shift in financial management [1] - A veteran from within the company is being brought back to take on the role of chief operating officer, suggesting a focus on experienced leadership [1] - These changes are part of a broader effort to strengthen the top ranks of the company under the new leadership of CEO Artie Starrs [1]

Core Insights - Harley-Davidson announced leadership and organizational changes aimed at strengthening its connection with riders and dealers, enhancing operational capabilities, and reaffirming its commitment to Milwaukee as its business hub [1][9]. Leadership Changes - Jonathan Root has been appointed as Chief Financial and Commercial Officer, focusing on dealer relations and integration with Harley-Davidson Financial Services [3][10]. - Bryan Niketh will return as Chief Operating Officer, overseeing Product Management, Product Development, and Product Operations, bringing extensive experience back to the company [4][10]. - Matt Ryan has been named Chief Marketing and Technology Officer, tasked with unifying marketing, digital, and technology efforts to enhance data-driven marketing and customer engagement [5][10]. - Marcus Fischer has taken on the role of Chief Brand Officer, responsible for brand strategy and creative direction, reporting to Matt Ryan [6][10]. - Bill Davidson will serve as Special Advisor to the CEO and Brand Ambassador, focusing on product development and community engagement [7]. - Karen Davidson continues as Brand Ambassador, enhancing collaboration with marketing and brand teams [8]. Commitment to Milwaukee - The company reaffirmed its dedication to Milwaukee, particularly the historic Juneau Avenue campus, as the core of its operations [9]. - These organizational changes are part of a broader strategy to strengthen relationships with dealers and riders, positioning Harley-Davidson for future growth [9]. Company Background - Harley-Davidson, Inc. encompasses Harley-Davidson Motor Company and Harley-Davidson Financial Services, with a mission to lead the motorcycle industry through innovation and a commitment to adventure [11]. - The company aims to maintain its status as the most desirable motorcycle brand globally, offering customizable motorcycles, accessories, and experiences [11]. - Harley-Davidson also holds a controlling interest in LiveWire Group, Inc., focusing on electric motorcycles and urban adventure [11].

Core Viewpoint - Harley-Davidson's stock has significantly declined, losing over 25% in 2025 and 70% from its all-time high in 2006, despite a potential boost from the White House's push for American manufacturing [1][2]. Group 1: Stock Performance - Harley-Davidson's share price is down over 25% in 2025, including an 8% drop since early December [2]. - The stock has lost 70% of its value from its peak of $75.87 in November 2006 [2]. Group 2: Consumer Confidence and Market Conditions - The University of Michigan's Consumer Sentiment Index increased slightly from 51.0 in November to 53.3 in December, but is down from 71.7 at the beginning of 2025 [4]. - Consumer confidence remains low, which negatively impacts businesses reliant on discretionary income [5]. Group 3: Financial Performance - Harley-Davidson's global retail motorcycle sales by unit volume decreased by 6%, with a 5% decline in North America, but motorcycle sales revenue increased by 34% to $822 million [6]. - Global shipments rose by 33%, with U.S. shipments increasing by 62%, indicating a stronger market [6]. - The company's operating profit was only 2% lower than the previous year, despite rising input and tariff-related costs [7]. - Harley-Davidson Financial Services (HDFS) saw a remarkable 472% increase in operating profits to $439 million [7]. Group 4: Strategic Moves - HDFS sold over $5 billion of its receivables to KKR & Co. and Pimco at a premium to par during the third quarter, marking a significant strategic shift [8].

Core Viewpoint - Harley-Davidson reported strong third-quarter earnings, significantly exceeding estimates, but faces challenges in retail sales and future guidance due to tariff uncertainties [2][8]. Financial Performance - Adjusted earnings for Q3 2025 were $3.10 per share, surpassing the Zacks Consensus Estimate of $1.38, and up from 91 cents per share in the same quarter last year [2]. - Consolidated revenues reached $1.34 billion, reflecting a 17% increase year-over-year [2]. - Revenues from the Motorcycle and Related Products segment rose 23% to $1.07 billion, driven by a 33% increase in motorcycle shipments to 36,500 units [3]. Segmental Highlights - Retail motorcycle units sold globally were 34,000, down 6% year-over-year but above expectations [4]. - Revenues from motorcycle sales were $822 million, up 34% year-over-year [3]. - Parts and accessories revenues decreased 4% to $167 million, while apparel revenues rose 1% to $56 million [5]. Financial Services - Harley-Davidson Financial Services generated revenues of $261 million, a 3% decline year-over-year, but operating income surged 472% to $439 million [5]. LiveWire Performance - LiveWire shipments totaled 184 units, an 86% increase year-over-year, but revenues of $6 million fell short of estimates [6]. - The operating loss for LiveWire narrowed from $26 million to $18 million, slightly better than projections [6]. Financial Position - As of September 30, 2025, cash and cash equivalents stood at $1.78 billion, with long-term debt reduced to $3.15 million [7]. - Selling, general, and administrative expenses increased to $229 million from $208.7 million year-over-year [7]. Guidance and Outlook - The company has not provided a financial outlook for 2025 due to tariff uncertainties but has updated LiveWire guidance, expecting an operating loss of $72-$77 million [8]. - Estimates for the stock have been trending downward, with a significant shift of -657.58% in consensus estimates [9]. Industry Comparison - Harley-Davidson operates within the Zacks Automotive - Domestic industry, where General Motors reported revenues of $48.59 billion, a slight decline of 0.3% year-over-year [12]. - General Motors is projected to post earnings of $2.21 per share for the current quarter, reflecting a year-over-year increase of 15.1% [13].

Company Overview - Harley-Davidson Inc. is a well-known American motorcycle manufacturer recognized for heavyweight motorcycles designed for cruising on highways with a rich history dating back to 1903 [1] - The company competes with other motorcycle manufacturers like Honda, Yamaha, and BMW [1] Recent Transactions - On November 28, 2025, Tim Moore, a representative from North Carolina, engaged in a sale transaction involving Harley-Davidson shares valued between $15,001 and $50,000 [2] - Moore's trading activities also included selling shares of Cracker Barrel Old Country Store and Verizon Communications, while purchasing shares in Harley-Davidson, Cracker Barrel, Hyster-Yale, and Genprex [2] Stock Performance - The current stock price of Harley-Davidson is $24.43, with a slight increase of $0.225, or approximately 0.93% [3] - Throughout the trading day, the stock has seen fluctuations, reaching a low of $24.22 and a high of $24.98 [3] - Over the past year, Harley-Davidson's stock has experienced a high of $34.09 and a low of $20.45 [3] Market Capitalization and Trading Volume - Harley-Davidson has a market capitalization of approximately $3.01 billion, indicating the total market value of its outstanding shares [4] - The trading volume for Harley-Davidson today is 1,724,096 shares, reflecting the number of shares traded during the day [4]

Core Viewpoint - Harley-Davidson Financial Services, Inc. announced the redemption of all outstanding 6.50% Medium-Term Notes due 2028 on December 12, 2025, with the redemption price being the greater of 100% of the principal amount or the "make-whole" redemption price plus accrued interest [1][2]. Group 1 - The total principal amount of outstanding Notes is approximately $262.9 million [2]. - The redemption will be funded from the company's cash and cash equivalents [2]. - Citibank, N.A. is serving as the paying agent for the Notes [3]. Group 2 - Harley-Davidson Financial Services, Inc. is a subsidiary of Harley-Davidson, Inc. and is involved in financing and servicing wholesale inventory receivables and retail consumer loans, primarily for Harley-Davidson and LiveWire motorcycles [4]. - The company also collaborates with third parties to provide motorcycle insurance and voluntary protection products [4]. - HDFS primarily operates in the United States and Canada, with financing options available through third-party financial institutions in other regions [4].

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future growth potential based on projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to highlight stocks with the best overall characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Harley-Davidson (HOG) - Harley-Davidson is classified as a 3 (Hold) on the Zacks Rank, with a VGM Score of A and a Value Style Score of A, indicating attractive valuation metrics such as a forward P/E ratio of 5.72 [11][12] - The company has seen an upward revision in earnings estimates, with the Zacks Consensus Estimate increasing by $0.03 to $4.23 per share for fiscal 2025, and an average earnings surprise of +27.6% [12]