Harley-Davidson Stock Rises After-Hours On Finance Arm Sale Buzz, But Retail Bears Pump The Brakes

Harley-Davidson, Inc.’s stock (HOG) rose nearly 3% after the closing bell on Thursday, trimming some losses from the regular session, following a report of the motorcycle maker mulling options for its financing unit.

However, Stocktwits user posts and data suggest retail investors are far from bullish on the company that has been struggling with slowing sales and stiff competition from foreign rivals.

According to a Bloomberg News report, which cited people familiar with the matter, the company is exploring strategic options for its financing arm, including a potential sale that could bring in at least $1 billion.

It is reportedly working with an adviser to gauge interest in Harley-Davidson Financial Services.

According to the report, the unit generated $248 million in operating income on roughly $1 billion in revenue last year.

However, Harley-Davidson has not finalized any decisions and could still choose to retain the unit.

On Stocktwits, sentiment for Harley-Davidson fell into the ‘bearish’ zone late on Thursday amid a 71% rise in message volume.

Retail traders were still digesting the company’s announcement earlier this week that CEO Jochen Zeitz plans to retire in 2025, with a formal search for his successor already underway.

One user, who said Zeitz’s exit "was not a good sign," claimed they "took a position at 20 in case this popped," adding that the stock "doesn't look good heading into [the] end of [the] week."

Another said: “I love my Harley but hate the company. If that is clear as mud! I sold my stock [a] few months ago, but if this goes to teens, I will have to get back in.”

Milwaukee, Wisconsin-based Harley-Davidson recently reported a bigger-than-expected quarterly loss, citing "cyclical headwinds for discretionary products, including the high-interest rate environment affecting consumer confidence."

Last month, the company said its products are also affected by unfair trade policies. If the European Union implements a 50% retaliatory tariff on its motorcycles in April, Harley prices could soar in its second-largest market by sales.

This week, more concerns emerged after The Wall Street Journal reported that a director representing Harley-Davidson’s second-largest shareholder had resigned from the board, accusing leadership — including the CEO — of making decisions that have damaged the brand.

Harley-Davidson stock has lost nearly 29% this year.

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