Acushnet Holdings President and CEO Trades $182K In Company Stock

A notable insider purchase on March 25, was reported by Eugene David Maher, President and CEO at Acushnet Holdings GOLF, based on the most recent SEC filing.

What Happened: In a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, it was disclosed that Maher bought 2,780 shares of Acushnet Holdings, amounting to a total of $182,434.

The latest update on Wednesday morning shows Acushnet Holdings shares down by 0.6%, trading at $66.64.

Discovering Acushnet Holdings: A Closer Look

Acushnet Holdings Corp is engaged in the design, development, manufacture, and distribution of golf products. Its product category includes golf balls, golf shoes, golf clubs, wedges, putters, golf gloves, golf gear and golf wear, and others. These products are offered through different brands such as Titleist, FootJoy, Scotty Cemeron, Vokey Design, Pinnacle, KJUS, and others. The company's reportable segments are Titleist golf equipment, FootJoy golf wear, and Gofl gear. A majority of its revenue is generated by the Titleist golf equipment segment. Geographically, the company generates maximum revenue from the United States, followed by Europe, Middle East and Asia (EMEA), Japan, Korea, and the Rest of the world.

Financial Insights: Acushnet Holdings

Positive Revenue Trend: Examining Acushnet Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.8% as of 31 December, 2024, showcasing a substantial increase in 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.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 22.61%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Acushnet Holdings's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of -0.02.

Debt Management: Acushnet Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.0, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 19.89 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.74 is above industry norms, reflecting an elevated valuation for Acushnet Holdings's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 13.13 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Understanding 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.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of 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 Acushnet Holdings's Insider Trades.

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