Latham group VP and controller sells over $51k in company stock By Investing.com

Latham Group, Inc. (NASDAQ:SWIM) has reported a recent transaction involving its Vice President & Controller, Kunchala Suraj. According to the filing, Suraj sold 10,139 shares of Latham Group’s common stock at a weighted average price of $5.0633, resulting in a total sale amounting to over $51,336.

The transaction took place on August 9, 2024, and was disclosed through a Form 4 filing with the Securities and Exchange Commission. The shares were sold in multiple transactions with prices ranging from $5.05 to $5.1010. Following this sale, Suraj’s direct ownership in the company stands at 38,748 shares.

Latham Group, headquartered in Latham, New York, is known for its diverse range of plastic products. The company, incorporated in Delaware, operates under the industrial classification of plastics products, not elsewhere classified (NEC), with a fiscal year ending on December 31.

Investors often monitor insider transactions as they can provide insights into an executive’s confidence in the company’s future performance. The sale by a high-ranking executive such as the Vice President & Controller may be of particular interest to current and potential shareholders.

For those seeking more detailed information about the transactions, the reporting officer has indicated a willingness to provide full details regarding the number of shares sold at each separate price within the stated range, upon request by the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.

Latham Group’s stock, traded under the ticker SWIM, may experience investor reaction to this news in upcoming trading sessions.

In other recent news, Latham Group has reported a resilient Q1 performance, exceeding its own forecasts despite a softer pool industry market. The company’s Q1 results showcased increased gross margins and a reduced net loss, with net sales declining by 19.7% to $110.6 million, yet gross margin improved to 27.7%. The net loss narrowed to $7.9 million, marking an improvement from the previous year. Latham’s cash position remained strong at $43.8 million, with continued investment in growth initiatives like sales, marketing, and R&D.

Despite a projected 15% decline in new pool starts compared to the previous year, Latham Group remains optimistic. The company has reported good performance with lower-cost options like fiberglass pools and Radiant panels, and anticipates potential market share gains with the rollout of their Measure tool for covers and liners. Latham also expects a rebound in pool starts in 2025 and 2026.

In line with a conservative capital allocation strategy, Latham Group anticipates consistent capital expenditures throughout 2024 and is prepared to deploy capital for growth as market conditions improve. The company’s full-year guidance for 2024 is supported by Q1 performance, with a reassessment planned for August. These are recent developments that highlight Latham Group’s strategic approach to navigating the current market conditions.

InvestingPro Insights

In light of the recent insider transaction at Latham Group, Inc. (NASDAQ:SWIM), investors may find the following metrics and InvestingPro Tips informative. The company has a market capitalization of $606.78 million and trades at a P/E ratio of 52.45, reflecting investor expectations of future earnings. Notably, analysts have revised their earnings upwards for the upcoming period, indicating potential confidence in the company’s performance. Additionally, the stock has experienced a significant return over the last week, with a 51.86% price total return, which could suggest a positive investor sentiment.

Despite a challenging period with a revenue decline of -14.66% over the last twelve months as of Q2 2024, Latham Group has maintained a gross profit margin of 29.28%, showcasing its ability to retain a degree of profitability. Furthermore, the company’s stock is trading near its 52-week high, at 98.51% of this peak, which may indicate a strong market belief in its value and potential.

For those who follow the market closely, there are additional InvestingPro Tips available that can provide deeper insights into Latham Group’s financial health and stock performance. Currently, there are 18 additional tips listed on InvestingPro, which can be accessed for a more comprehensive analysis of the company’s prospects.

Overall, these InvestingPro Insights can help shareholders and potential investors make informed decisions by considering both the insider trading activity and the company’s recent financial performance.

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