Is Harley Davidson finally a buy at $20?

Equities

Harley Davidson stock has collapsed, trading down about 70% over the last few years. The Covid-19 outbreak has only made matters worse. But at $20 is HOG finally a buy?

New CEO Jochen Seitz is buying shares. Our Insiders Tool shows he purchased over $2m in HOG this week – the biggest insider transaction in 13 years. Seitz was the interim CEO and was made permanent on May 7th – he’s trying to lead from the front and show confidence in the stock. The Insider Activity indicator shows positive sentiment over the last 3 months as well.

Analysts though are more cautious with an average Hold rating on the stock. Last month JPMorgan analyst Shawn Quigg sounded the alarm bell over the financial services side of the business, which makes up almost half of the operating income. Quigg estimates about a fifth of the financial services business is ‘sub-prime’ and will face severe headwinds as a result of the economic shutdown.