Shares in iconic motorbike manufacturer Harley-Davidson (HOG) edged higher in pre-market trading today despite being forced to recall nearly 100,000 bikes due to mechanical issues.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Key Details of the Recall
The U.S. National Highway Traffic Safety Administration (NHTSA) said HOG was recalling 88,039 motorcycles in the U.S. due to an airbox backplate breather port that may be blocked. That could allow pressure to build up inside the crankcase and increase the risk of mechanical problems.
That in turn could potentially increase the risk for riders out on the highways. However, the agency did not immediately report any injuries or incidents linked to the defect.
Harley-Davidson said it is addressing the issue as part of its standard safety procedures. Dealers are expected to inspect and repair affected motorcycles to resolve the defect.
Earlier this month, HOG said it was recalling several motorcycles because the rear brakes might fail. That included more than 16,000 2025 and 2026 FLHC, FXBB, FXLRS and FXLRST Softail motorcycles.
It said that the rear brake line may contact the body control module, resulting in a hole in the brake line, a brake fluid leak and loss of rear brakes.
Why Investors Aren’t Worried
The company, one of the most well-known motorcycle manufacturers in the world, regularly works with regulators to manage safety recalls when potential mechanical risks are identified. It is clearly taking action to tackle the problem, which means those affected bikes will be back on the road soon.
Overall, recalls like these rarely move stocks unless they reveal a bigger problem such as multiple injuries. In this case, investors aren’t worried because the market has, no doubt, already priced in the possibility of minor recalls.
Harley-Davidson’s Risk Analysis
According to TipRanks’ Risk Analysis Tool, HOG’s production risks make up 50% of its overall risk profile, with legal and regulatory risks making up the other 50%. These are important risks to consider for investors looking to put their money into the stock – see below.
Is HOG a Good Stock to Buy Now?
On TipRanks, HOG has a Hold consensus based on 2 Buy, 3 Hold and 2 Sell ratings. Its highest price target is $25. HOG stock’s consensus price target is $20, implying a 16.28% downside.
