Noteworthy Insider Activity: Roger Wood Invests $73K In Brunswick Stock

A significant insider buy by Roger Wood, Director at Brunswick BC, was executed on February 2, and reported in the recent SEC filing.

What Happened: Wood made a significant move by purchasing 913 shares of Brunswick as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $73,660.

As of Friday morning, Brunswick shares are down by 0.0%, currently priced at $84.49.

Get to Know Brunswick Better

Brunswick is a leading manufacturer in the marine recreation industry. The company has more than 60 brands delivering products across propulsion (outboard, sterndrive, and inboard engines, propulsion-related controls, rigging, and propellers), parts, accessories, and technology, and boats (including well-known brands like Boston Whaler and Sea Ray). It also owns numerous Freedom Boat Club (shared ownership) locations as well as Boateka, which facilitates transactions in the used boat market. Brunswick's focus surrounds building the innovative marine and recreational experiences, technologies, and connections supported by quality and innovation.

Brunswick: A Financial Overview

Revenue Challenges: Brunswick's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -6.16%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 27.91%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Brunswick's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.61.

Debt Management: Brunswick's debt-to-equity ratio stands notably higher than the industry average, reaching 1.22. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The P/E ratio of 12.0 is lower than the industry average, implying a discounted valuation for Brunswick's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.91 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 7.41 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Uncovering the Importance of Insider Activity

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Brunswick's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.