Investment firm Coliseum Capital Management, LLC has made a significant purchase of shares in MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT), a prominent player in the boat manufacturing industry. The transactions, which took place between June 20 and June 24, 2024, amounted to a total of $2,095,410, with share prices ranging from $19.39 to $19.58.
The buying spree began on June 20 when Coliseum Capital Management acquired 24,054 shares at a weighted average price of $19.53. The following day, an additional 45,000 shares were purchased at an average price of $19.39. The firm continued its accumulation on June 24, adding another 38,462 shares to its holdings at an average price of $19.58.
These strategic purchases have increased Coliseum Capital Management's total ownership in MasterCraft Boat Holdings to 3,372,670 shares. The firm, known for its significant stakes in companies, is now an even more prominent investor in the boating industry giant.
The shares are held through a combination of direct ownership by Coliseum Capital Partners, L.P., and a separate account investment advisory client, both managed by Coliseum Capital Management. Christopher S. Shackelton and Adam Gray, managers and ownership interest holders in the firm, have stated that they disclaim beneficial ownership of these securities except to the extent of their pecuniary interest.
Investors are often keen on the buying and selling activities of major stakeholders like Coliseum Capital Management, as these can signal confidence or concern regarding a company's future prospects. The recent purchases by Coliseum Capital Management could suggest a positive outlook on MasterCraft Boat Holdings' market position and potential for growth.
In other recent news, MasterCraft Boat Holdings, Inc. reported a significant decrease in its Q3 2024 performance, with net sales dropping by 43% to $95.7 million. This decline was primarily attributed to reduced unit sales and increased dealer incentives. MasterCraft's gross margin also saw a decrease to 19.2%, and adjusted net income fell to $6.3 million. Amid these developments, the company revised its full-year guidance, which now anticipates net sales between $360 million and $365 million, adjusted EBITDA between $28 million and $30 million, and earnings per share between $0.95 and $1.05. As part of its strategy to diversify its product range, MasterCraft has launched Balise, a luxury pontoon brand. The company also plans to reduce dealer inventory and rebalance production. These are the latest developments in MasterCraft's ongoing efforts to navigate the current economic landscape.
InvestingPro Insights
In light of Coliseum Capital Management's recent accumulation of shares in MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT), several metrics and InvestingPro Tips provide additional context for investors considering the company's stock. MasterCraft's management has been actively repurchasing shares, which is often a sign of confidence in the company's valuation and future prospects. Moreover, the company holds more cash than debt on its balance sheet, providing financial stability and flexibility.
From a financial standpoint, MasterCraft Boat Holdings currently has a market capitalization of $340.64 million USD and a Price/Earnings (P/E) ratio of 8.94, which is reduced to 8.26 when adjusted for the last twelve months as of Q3 2024. The company's revenue for the same period stands at $465.97 million USD, although there has been a notable decline in revenue growth, with a -32.73% change over the last twelve months as of Q3 2024.
Investors should also note that analysts are anticipating a sales decline and a drop in net income for the current year. However, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year. These insights, alongside the fact that MasterCraft does not pay a dividend to shareholders, could influence investment strategies.
For those who are looking for more in-depth analysis and additional metrics, there are 9 more InvestingPro Tips available that could provide further guidance on Mastercraft's financial health and future outlook. Investors can access these tips by visiting the InvestingPro platform and may use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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