Please ensure Javascript is enabled for purposes of website accessibility

Harley-Davidson Stock Fights Back From 10% Drop

By Rich Duprey – Jun 11, 2020 at 11:38AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The motorcycle maker was able to halve the initial loss in value in morning trading.

What happened

Shares of Harley-Davidson (HOG 1.70%) slid 5% in morning trading Thursday as fear of a second wave of COVID-19 cases weighed on the market.

So what

While the motorcycle company had opened almost 10% down, the decline in the stock represents the worry that a new coronavirus outbreak could set back the economy just as it is beginning to reopen.

Harley-Davidson was already having trouble selling motorcycles when the economy was doing well, but the lockdown on business has likely turned off the spigot on almost all sales this quarter.

Man riding LiveWire electric motorcycle

Image source: Harley-Davidson.

Now what

The bike maker's stock has rallied some 75% from the lows it hit in March when the pandemic was declared, even though there is little more at this point than hope that new CEO Jochen Zeitz can turn the company around.

The 57% decline in the stock to under $15 a share following the outbreak may have been overdone, but consumers have failed to buy Harleys for five straight years. It's not unwarranted to think any growth might be wiped out in a pandemic.

The rebound in the shares is based on an as-yet-undefined plan to reboot its turnaround strategy, which may be giving Harley-Davidson too much credit at this point. Investors taking profits now is not a surprise.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Harley-Davidson, Inc. Stock Quote
Harley-Davidson, Inc.
HOG
$38.18 (1.70%) $0.64

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.