Board Member Of Brunswick Makes $78K Buy

David V Singer, Board Member at Brunswick BC, reported an insider buy on August 1, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Singer purchased 958 shares of Brunswick. The total transaction amounted to $78,029.

Tracking the Friday's morning session, Brunswick shares are trading at $78.64, showing a up of 1.35%.

About Brunswick

Brunswick is a leading manufacturer in the marine recreation industry. The firm has more than 60 brands delivering products across propulsion (outboard, sterndrive, and inboard engines, propulsion-related controls, rigging, and propellers), parts, accessories, and technology, and boats (including well-known brands like Boston Whaler and Sea Ray). It also owns numerous Freedom Boat Club (shared ownership) locations as well as Boateka, which facilitates transactions in the used boat market. Brunswick's focus surrounds building the innovative marine and recreational experiences, technologies, and connections supported by quality and innovation.

Key Indicators: Brunswick's Financial Health

Positive Revenue Trend: Examining Brunswick's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.78% as of 30 June, 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.

Profitability Metrics: Unlocking Value

• Gross Margin: The company faces challenges with a low gross margin of 27.08%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Brunswick's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.48.

Debt Management: With a high debt-to-equity ratio of 1.4, Brunswick faces challenges in effectively managing its debt levels, indicating potential financial strain.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Brunswick's P/E ratio of 14.92 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.93 is lower than the industry average, implying a discounted valuation for Brunswick's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 8.69 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Navigating the Impact of Insider Transactions on Investments

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Brunswick's Insider Trades.

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