Roger Wood Of Brunswick Shows Optimism, Buys $79K In Stock

Roger Wood, Board Member at Brunswick BC, disclosed an insider purchase on August 1, based on a new SEC filing.

What Happened: Wood made a significant move by purchasing 970 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 $79,006.

The latest update on Friday morning shows Brunswick shares up by 1.35%, trading at $78.64.

About Brunswick

Brunswick is a leading manufacturer in the marine recreation industry. The firm 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's Financial Performance

Revenue Growth: Brunswick's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 5.78%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 27.08%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.48, Brunswick showcases strong earnings per share.

Debt Management: Brunswick's debt-to-equity ratio stands notably higher than the industry average, reaching 1.4. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Market Valuation:

• Price to Earnings (P/E) Ratio: Brunswick's P/E ratio of 14.92 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.93, 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 a below-average EV/EBITDA ratio of 8.69, Brunswick presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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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Illuminating the Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Brunswick's Insider Trades.

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