3. Harley-Davidson, Inc. (NYSE:HOG)
Number of Hedge Fund Holders: 29
One of the best EV stocks, Harley-Davidson, Inc. (NYSE:HOG) is a storied manufacturer of motorcycles based in Wisconsin. It has operations across Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services.
The decision to spin off its electric motorcycle division, LiveWire, through a merger with AEA-Bridges Impact has positioned it as the first publicly traded electric motorcycle company in the United States. While LiveWire is a publicly traded company on its own, Harley-Davidson, Inc. (NYSE:HOG) owns a controlling interest in the company.
The move emphasizes the company’s dedication to the electric vehicle sector while allowing the core motorcycle business to thrive independently as LiveWire focuses on capturing the growing demand for electric motorcycles.
Under the LiveWire brand, the company has introduced a series of electric motorcycles, including the flagship LiveWire ONE. Equipped with a 15.5 kWh battery, the model offers an impressive range of approximately 104 miles on a full charge, which is a significant innovation for the company.
In March, the company expanded its electric offerings with the launch of the LiveWire S2 Mulholland, which shows its focus on diversifying its product line to meet varying consumer needs in the electric segment.
At a stake value of $594.413 million, 29 hedge funds held positions in Harley-Davidson (NYSE:HOG) in the second quarter. As of June 30, H Partners Management is the top shareholder in the company and has a position worth $389.064 million.
In addition to advancements in product development, it announced a strong share repurchase program in July, with plans to buy back $1 billion of its outstanding common stock by 2026.
The new initiative will utilize cash flow from operations and replace existing repurchase plans, building on the $875 million already spent on share buybacks since 2022. Such actions underline its intent to return value to shareholders while enhancing the stock’s appeal.
On September 24, Harley-Davidson (NYSE:HOG) announced a cash dividend of $0.1725 per share for the third quarter, payable by September 27 to shareholders on record as of September 16. As of September 25, the stock’s dividend yield is 1.81%.
Artisan Partners stated the following regarding Harley-Davidson, Inc. (NYSE:HOG) in its Q2 2024 investor letter:
“The biggest detractors from performance during the quarter were Harley-Davidson, Inc. (NYSE:HOG), Henry Schein and Expedia. Harley’s share price declined 23% during the quarter after a strong run in Q1. We had significantly reduced our position at higher share prices over the past 12–18 months. The shares have been weak over concerns that higher interest rates are impacting affordability and retail sales. We share these concerns. Harley is likely to reduce its forecasts for the year when it reports, though this now appears to be discounted in the valuation. Famous last words. The shares now trade at a single-digit multiple of earnings. We believe the brand is strong, and management is able to adjust production and costs to meet various demand environments. If interest rates begin to decline as anticipated, demand should improve.”
