Engaging In Options Activity, Manuel Perez de la Mesa Exercises Options Valued At $7.50M In Pool

On February 27, it was revealed in an SEC filing that Manuel Perez de la Mesa, Board Member at Pool POOL executed a significant exercise of company stock options.

What Happened: Mesa, Board Member at Pool, exercised stock options for 27,500 shares of POOL stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $69.85 per share.

Pool shares are currently trading down by 0.0%, with a current price of $342.54 as of Friday morning. This brings the total value of Mesa's 27,500 shares to $7,498,975.

All You Need to Know About Pool

Pool Corp distributes swimming pool supplies and related products. It sells national-brand and private-label products to approximately 120000 customers. The products include non-discretionary pool-maintenance products, like chemicals and replacement parts, as well as pool equipment, like packaged pools (kits to build swimming pools), cleaners, filters, heaters, pumps, and lights. Customers include pool builders and remodelers, independent retail stores, and pool repair and service companies.

Pool: A Financial Overview

Decline in Revenue: Over the 3 months period, Pool faced challenges, resulting in a decline of approximately -31.08% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 29.39%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.98, Pool showcases strong earnings per share.

Debt Management: Pool's debt-to-equity ratio is below the industry average at 1.0, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Pool's current Price to Earnings (P/E) ratio of 30.31 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.47 is above industry norms, reflecting an elevated valuation for Pool's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 21.47 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Why Pay Attention to Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 Pool's Insider Trades.

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