Insider Decision: Michael Scott Rajeski Offloads $169K Worth Of Latham Group Stock

Making a noteworthy insider sell on August 27, Michael Scott Rajeski, Chief Executive Officer at Latham Group SWIM, is reported in the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Rajeski sold 25,851 shares of Latham Group. The total transaction value is $169,065.

Monitoring the market, Latham Group's shares up by 1.63% at $6.25 during Wednesday's morning.

About Latham Group

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.

Latham Group's Financial Performance

Decline in Revenue: Over the 3 months period, Latham Group faced challenges, resulting in a decline of approximately -9.6% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's 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.

Insights into Profitability:

• 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 Analysis:

• Price to Earnings (P/E) Ratio: Latham Group's current Price to Earnings (P/E) ratio of 55.91 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.35 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): Latham Group's EV/EBITDA ratio, surpassing industry averages at 12.91, positions it with an above-average valuation in the market.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Transaction Codes To Focus On

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.