Michael Scott Rajeski Implements A Sell Strategy: Offloads $200K In Latham Group Stock

Making a noteworthy insider sell on August 19, Michael Scott Rajeski, Chief Executive Officer at Latham Group SWIM, is reported in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that Rajeski executed a sale of 33,000 shares of Latham Group with a total value of $200,970.

Latham Group's shares are actively trading at $5.83, experiencing a down of 2.13% during Tuesday's morning session.

Delving into Latham Group's Background

Latham Group Inc is a designer, manufacturer, and marketer of in-ground residential swimming pools, liners, and covers in North America, Australia, and New Zealand. It derives a majority of its revenue from the United States.

Key Indicators: Latham Group's Financial Health

Negative Revenue Trend: Examining Latham Group's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -9.6% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 33.11%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Latham Group's EPS is below the industry average. The company faced challenges with a current EPS of 0.12. This suggests a potential decline in earnings.

Debt Management: Latham Group's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.76, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 54.18 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.31 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 12.6, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

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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Delving Into the Significance 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.

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.

The Insider's Guide to Important Transaction Codes

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 Latham Group's Insider Trades.

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