Shares of RumbleON Inc. (RMBL) dropped 6.3% toward a 22-month low, in the wake of Harley-Davidson Inc.'s (HOG) announcement that it was suspending all assembly and shipments for two weeks due to a regulatory compliance matter. Harley-Davidson's stock sank 8.9%. RumbleON, which is a motor vehicle dealer and ecommerce platform, said in its latest annual report that Harley-Davidson was its third largest customer in 2021, accounting for 16.1% of total new vehicle sales. B. Riley analyst Eric Wold reiterated the buy rating he's had on RumbleON for at least the past three years, and kept his stock price target at $53. He believes the Harley-Davidson news could end up being a net positive for RumbleON, as the Harley's share of the company's revenue has been falling, from a 12-month rate of about 24% as of the end of June. Basically, Wold doesn't believe a two-week production suspension would represent anything different from what RumbleON has already been facing. And the lack of new Harleys could push RumbleON's customers to its "significant inventory" of used Harleys. RumblON's stock has plummeted 64.3% year to date, while Harley shares have shed 13.6% and the S&P 500 has lost 17.9%.
(END) Dow Jones Newswires
May 19, 2022 14:09 ET (18:09 GMT)
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