What Happened:

Shares of american motorcycle manufacturing company Harley-Davidson (NYSE:HOG) fell 14.3% in the morning session after the company reported first-quarter results with operating profits falling below Wall Street's estimates. Looking closely, both gross and operating margins in the core segment that sells motorcycles and parts declined meaningfully year over year. Overall, the results could have been better.

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What is the market telling us:

Harley-Davidson's shares are quite volatile and over the last year have had 7 moves greater than 5%. But moves this big are very rare even for Harley-Davidson and that is indicating to us that this news had a significant impact on the market's perception of the business.

Harley-Davidson is down 6.7% since the beginning of the year, and at $33.79 per share it is trading 23.1% below its 52-week high of $43.94 from March 2024. Investors who bought $1,000 worth of Harley-Davidson's shares 5 years ago would now be looking at an investment worth $927.92.

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