Latham group general counsel sells over $20k in company stock By Investing.com

Latham Group, Inc.’s (NASDAQ:SWIM) General Counsel & Secretary, Patrick M. Sheller, has recently sold a portion of his company stock, according to the latest filings. On August 9, 2024, Sheller sold 3,942 shares of Latham Group at a price of $5.08 per share, totaling over $20,025.

The transaction was executed as an automatic “sell-to-cover” to fulfill tax obligations related to the vesting of restricted stock units (RSUs) on August 8, 2024. Following the sale, Sheller’s remaining direct ownership in the company stands at 270,954 shares of common stock.

Investors and market watchers often look at insider sales and purchases as a signal of an executive’s confidence in the company’s future prospects. However, transactions like this “sell-to-cover” are a common practice to manage tax events resulting from the vesting of RSUs and may not necessarily indicate a change in an executive’s view of the company’s potential.

Latham Group, Inc., headquartered in Latham, New York, specializes in plastics products and operates under the Industrial Applications and Services sector. The company’s stock is publicly traded on the NASDAQ under the ticker symbol SWIM.

In other recent news, Latham Group has reported a resilient first quarter, exceeding its own projections despite a soft market. The company’s strategic cost reductions and efficiency improvements resulted in a stronger margin profile, even with a year-over-year net sales decline of 19.7% to $110.6 million. However, gross margin improved to 27.7% and net loss narrowed to $7.9 million, showing an improvement from the previous year. Latham Group’s cash position remained robust at $43.8 million, and the company continues to prioritize investment in growth initiatives. Despite a projected market decline of 15% for new pool starts, the company remains optimistic about potential market share gains with the rollout of their Measure tool for covers and liners. The company anticipates consistent capital expenditures throughout 2024, with plans to deploy capital for growth as market conditions improve. These are among the recent developments for Latham Group.

InvestingPro Insights

Following the recent insider transaction at Latham Group, Inc. (NASDAQ:SWIM), where General Counsel & Secretary Patrick M. Sheller sold shares for tax obligations, investors may be looking for additional context to understand the company’s financial health and stock performance. Here are some key insights based on data from InvestingPro:

Despite a challenging environment, Latham Group has managed to maintain a market capitalization of $606.78 million. This reflects investor confidence in the company’s ability to navigate market fluctuations. Moreover, the stock has experienced a significant return over the last week, with a 51.86% price total return, indicating a strong short-term performance that could catch the eye of momentum investors.

InvestingPro Tips suggest that net income is expected to grow this year, which could be a driving factor behind the stock’s recent performance. Additionally, the fact that four analysts have revised their earnings upwards for the upcoming period is a positive sign that may influence investor sentiment.

On the valuation front, Latham Group is trading at a P/E ratio of 52.45, which is considered high; however, it’s important to note that it is trading at a low PEG ratio of 0.3 for the last twelve months as of Q2 2024, suggesting that the high P/E ratio could be justified by the company’s earnings growth potential.

For those interested in more comprehensive analysis, there are 17 additional InvestingPro Tips available on the platform, providing deeper insights into Latham Group’s financials and stock performance. Investors can access these valuable tips by visiting https://www.investing.com/pro/SWIM.

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