Why Malibu Boat (MBUU) stock price is falling today
Why Malibu Boat (MBUU) stock price is falling today
What Happened: Shares of recreational boat manufacturer Malibu Boats (NASDAQ:) fell 16.4% in the morning session after the company reported second-quarter results that missed Wall Street’s revenue expectations. Guidance was also worrisome, with the company projecting sales to decline “in the mid-30s to more than 30% year-over-year” compared to 2023 and below Wall Street estimates. Finally, management cited “weakening retail demand,” “rising inventory levels” and “uncertainty” in the macroeconomic backdrop in the press release. Malibu Boats, on the other hand, exceeded analysts’ EPS and operating margin expectations for the quarter. Zooming out, this was a mixed but overall mediocre quarter.
The stock market overreacts to news, and large price drops can provide great opportunities to buy high-quality stocks. Is now the time to buy a Malibu boat? Read the original article on StockStory.
What the Market is Telling Us: Malibu Boats’ stock is less volatile than the market average, with only 9 moves of more than 5% over the last year. Moves this big are very rare for Malibu Boats, indicating that this news has had a significant impact on the market’s perception of the business.
Malibu Boats is down 20.2% since the beginning of the year and is trading at $43.01 per share, 34% below its 52-week high of $65.17 set in February 2023. Investors who bought $1,000 worth of Malibu Boat stock five years ago are now looking at $1,072 worth of investment.
