Latham Group, Inc. (NASDAQ:SWIM) CEO Scott Michael Rajeski has sold a portion of his company shares, according to a recent regulatory filing. The transaction, which took place on August 16, involved the sale of 33,000 shares at an average price of $6.09, totaling approximately $200,970.
The reported sale occurred through multiple transactions at prices ranging from $6.01 to $6.15 per share. Following this sale, Rajeski still holds a significant number of shares, with direct ownership of 516,680 shares and indirect ownership of 4,077,901 shares through Scott Rajeski Family, LLC.
This move by the CEO of Latham Group, a company specializing in plastics products, comes as a notable transaction from the company's top executive. The sale was disclosed in a Form 4 filing with the Securities and Exchange Commission, with Patrick M. Sheller signing as Attorney-in-Fact for Rajeski.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it's also common for executives to sell shares for personal financial planning, diversification, and other non-company related reasons.
For those interested in Latham Group's stock performance and insider transactions, the latest updates are always available through regulatory filings and can provide valuable information for making informed investment decisions.
In other recent news, Latham Group reported its Q2 2024 results, demonstrating resilience amid challenging market conditions. Despite a 9.6% decrease in net sales, the company managed a substantial increase in adjusted EBITDA margin by 400 basis points. This was attributed to effective restructuring and cost management strategies, as well as lower raw material costs. The company also completed the acquisition of Coverstar Central, which is expected to bolster sales of automatic safety covers and improve margins.
Furthermore, Latham Group adjusted its full-year EBITDA guidance upwards by $15 million, although it anticipates a 15% decline in new pool starts. Notably, net income rose to $5.4 million compared to a loss in the prior year. The company remains focused on cost management and is exploring further mergers and acquisitions. These recent developments indicate that Latham Group is navigating the market challenges with strategic initiatives aimed at maintaining profitability and expanding market share.
InvestingPro Insights
Following the recent sale of shares by Latham Group, Inc. (NASDAQ:SWIM) CEO Scott Michael Rajeski, investors may be curious about the company's financial health and market performance. According to InvestingPro, Latham Group has been experiencing significant price volatility, with a substantial return over the last six months, indicating a potentially higher risk-reward scenario for investors. The stock has seen a price total return of 116.73% over the last six months, reflecting strong market confidence during this period.
Analyzing the company's valuation metrics, Latham Group is trading at a Price/Earnings (P/E) ratio of 58.24, which is considered high compared to the broader market. However, the company's Price/Earnings to Growth (PEG) ratio as of the last twelve months ending Q2 2024 stands at 0.36, suggesting that the stock may be undervalued relative to its earnings growth. This could be an indicator that investors are optimistic about the company's future earnings potential.
On the operational front, despite a revenue decline of 14.66% over the last twelve months, the company maintains a robust gross profit margin of 29.28%, indicating that it is still generating a healthy profit on its sales. With a market capitalization of $685.95 million, the company's size and financial stability could provide some assurance to investors.
For those looking for more comprehensive analysis, there are additional InvestingPro Tips available on the platform. For instance, analysts have revised their earnings upward for the upcoming period, which can be a bullish sign for the stock. Moreover, with the stock trading at a high earnings multiple, it's essential to consider the company's growth prospects when evaluating its current valuation. For more in-depth insights and tips, investors can explore the full range of tips on InvestingPro for Latham Group, Inc. at https://www.investing.com/pro/SWIM.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.