Camping World Holdings, Inc., a prominent player in the recreational vehicle (RV) industry, has recently piqued the interest of investors and analysts after the National Bank of Canada disclosed its increased stake in the company.
This development has fueled curiosity about Camping World’s future prospects in the RV market, both in the United States and Canada.
During the fourth quarter of last year, the National Bank of Canada raised its holdings in Camping World by 13.4%, now possessing 62,195 shares valued at $1,387,000, according to a report by BeStocks.
This strategic investment reinforces the Canadian firm’s commitment to the outdoor retailer, which aims to expand its presence in the growing RV sector.
Despite starting the fiscal year with missed earnings estimates, released on February 21st, Camping World has displayed remarkable resilience. The company reported a loss per share of ($0.33), while experts had anticipated losses at only ($0.15) per share.
Nevertheless, the retailer generated strong revenue numbers, with Q4 FY2022 income reaching $1.28 billion, surpassing the expected estimate of $1.25 billion.
Camping World’s success can be credited to its two primary business segments: Good Sam Services & Plans and RV & Outdoor Retail.
Good Sam Services & Plans emphasize insuring and promoting the RV lifestyle, offering customers protection programs, plans, and other related services. Both segments contribute significantly to the company’s overall performance.
With a return on equity exceeding 50%, Camping World continuously seeks to innovate its product offerings, catering to both new and experienced RV enthusiasts while generating favorable returns for shareholders.
Analysts foresee a robust year ahead for the company, with earnings per share (EPS) for the current fiscal year projected to be around 1.16.
Recently, Camping World Holdings disclosed its quarterly dividend, awarding shareholders of record on Tuesday, March 14, a $0.625 dividend. This represents an annual dividend of $2.50 and a yield of 12.20%. The company’s payout ratio stands at 77.88%, with its stock listed on the New York Stock Exchange (NYSE) under the ticker symbol CWH.
According to recent data from Bloomberg.com, hedge funds and other institutional investors have increased their ownership in Camping World to 36.92% of the company’s stock as of April 11, 2023.
This includes significant investments from firms such as DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main, Bogart Wealth LLC, Ensign Peak Advisors Inc, MBM Wealth Consultants LLC, and Zurcher Kantonalbank Zurich Cantonalbank.
Camping World Holdings exhibits strong growth potential in the RV industry, with its retail operations and expanding support services offered through the Good Sam Services & Plans segment.
As the National Bank of Canada bolsters its holdings in the company and market analysts anticipate a positive growth year, Camping World’s influence on the RV market in the United States and Canada is expected to flourish.