Brunswick Board Member Trades $76K In Company Stock

A notable insider purchase on August 1, was reported by J. Steven Whisler, Board Member at Brunswick BC, based on the most recent SEC filing.

What Happened: Whisler made a significant move by purchasing 939 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 $76,481.

Brunswick's shares are actively trading at $78.64, experiencing a up of 1.35% during Friday's morning session.

Get to Know Brunswick Better

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: Delving into Financials

Revenue Growth: Brunswick displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 5.78%. This indicates a notable 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.

Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 27.08%, indicating potential difficulties in maintaining 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: With a high debt-to-equity ratio of 1.4, Brunswick faces challenges in effectively managing its debt levels, indicating potential financial strain.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.92 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.93 is lower than the industry average, implying a discounted valuation for Brunswick's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 8.69 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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The Relevance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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.

Navigating the World of Insider Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed 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.