Harley-Davidson, Inc. (HOG) in Milwaukee, Wisc., manufactures and sells custom cruiser and touring motorcycles. The company operates in two segments: motorcycles; and related products and financial services. Shares of the renowned motorcycle manufacturer have gained 17.2% in price over the past year and 10.7% year-to-date. Over the past five days, the stock has gained 16.7% to close the last trading session at $41.72.
The stock jumped nearly 15% in price on February 8, after the company posted a sharp increase in revenue and a surprise profit for the fourth quarter, boosted by price hikes and a shift toward sales of higher-margin touring and cruiser motorcycles. For the last two years, the company had been strategizing and focusing on selling its high-margin products to older and wealthier customers in markets that include the U.S. and Europe. The higher pricing strategy and stable demand helped the company hold up well amid surging raw material prices and volatile supply chains.
