MARCUS LEMONIS Implements A Sell Strategy: Offloads $2.56M In Camping World Holdings Stock

MARCUS LEMONIS, Chief Executive Officer at Camping World Holdings CWH, reported an insider sell on March 20, according to a new SEC filing.

What Happened: LEMONIS's decision to sell 100,000 shares of Camping World Holdings was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $2,562,887.

At Wednesday morning, Camping World Holdings shares are down by 0.0%, trading at $25.0.

Delving into Camping World Holdings's Background

Camping World Holdings Inc is retailer of RVs and related products and services. The Company has the two reportable segments: Good Sam Services and Plans segment includes sale of emergency roadside assistance plans; commissions on property and casualty insurance programs; travel assist programs; extended vehicle service contracts; vehicle financing and refinancing assistance; consumer shows and events; and consumer publications and directories. RV and Outdoor Retail segment includes the sale of new and used RVs; commissions on the finance and insurance contracts related to the sale of RVs; the sale of RV service and collision work; the sale of RV parts, accessories, sale of outdoor products, equipment, gear and supplies; business to business distribution of RV furniture, etc.

Camping World Holdings: A Financial Overview

Negative Revenue Trend: Examining Camping World Holdings's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -13.35% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Analyzing Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 29.23%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Camping World Holdings's EPS reflects a decline, falling below the industry average with a current EPS of -0.37.

Debt Management: Camping World Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 30.95, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 45.45 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.34, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 14.69, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Transactions Are Important

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Deciphering Transaction Codes in Insider Filings

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Camping World Holdings's Insider Trades.

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