Massive Insider Trade At MarineMax

A substantial insider sell was reported on July 31, by Kyle Langbehn, EVP at MarineMax HZO, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Langbehn executed a sale of 10,000 shares of MarineMax with a total value of $372,400.

MarineMax's shares are actively trading at $34.87, experiencing a down of 0.0% during Thursday's morning session.

All You Need to Know About MarineMax

MarineMax Inc is a United-States-based company that sells new and used recreational boats under premium brands, and related marine products, like engines, parts, and accessories. The company is also engaged in other businesses, including providing services of repair, maintenance, and storage; managing related boat financing, insurance, and others; offering brokerage sales of boats and yachts; and operating a yacht charter business. The reportable segments of the company are Retail Operations and Product Manufacturing. The Retail Operations segment generates the majority of the company's revenue. The sale of new and used boats accounts for the majority of the company's total revenue. It serves customers across the U.S.

Financial Milestones: MarineMax's Journey

Revenue Growth: MarineMax's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 4.97%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 31.95%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): MarineMax's EPS reflects a decline, falling below the industry average with a current EPS of 1.42.

Debt Management: With a high debt-to-equity ratio of 1.28, MarineMax faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 16.37 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.32 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 9.7 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Navigating the Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Understanding Crucial Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of MarineMax's Insider Trades.

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