Daniel Shvartsman

Investing.com – Thor Industries On Wednesday, (NYSE) shares rose after the company released its results. announced a $250M share buyback authorization.

Following the purchase of shares the previous evening, the recreational vehicle manufacturer’s stock rose 3.2% on Wednesday.

In addition to commentary about the price, the press release that announced the buyback included comments on it. Thor Industries President and CEO Bob Martin stated that “our strong earnings growth positions our company to deliver value back to shareholders.” We believe that there is an important misalignment in our value and stock price. The current market price of THOR’s shares is the best investment opportunity, considering our optimistic outlook in the sector and business.

Thor’s revenue and earnings increased substantially over the pandemic. The sector benefited from a boom in road travel and camping, and restrictions have led to significant increases in revenues. Thor pursued an aggressive roll-up strategy and acquired Tiffin Motor Home for $300M as well as Airxcel, an RV parts company for $750M. This was in addition to the acquisitions of Tiffin Motor homes for $300M.

Stocks have only risen 5.5% in the past year. This is despite investors focusing on the period after the pandemic and wondering when the slowdown might hit Thor and the peers. This buyback would cover 4.5% of outstanding shares at the current price. However, management commentary and investors are skeptical. The market is yet to decide if it will actually buy them.

Peer Winnebago Industries Inc (NYSE): The stock is up by 3.3% Camping World Holdings Inc (NYSE:) Up.8%