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Fox Factory executive sells shares worth over $88k

Published 06/11/2024, 04:54 PM
FOXF
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In a recent transaction, Thomas L. Fletcher, President of the Aftermarket Applications Group at Fox Factory Holding Corp (NASDAQ:FOXF), sold 2,000 shares of the company's common stock. The shares were sold at an average price of $44.41, totaling approximately $88,820.

The sale was executed on June 10, 2024, with prices ranging from $44.34 to $44.49 per share. Following this transaction, Mr. Fletcher's direct ownership in the company stands at 11,311 shares of common stock.

Fox Factory Holding Corp, known for its design and production of high-performance suspension products, has not released any statements regarding this transaction. Investors and shareholders are often interested in trades made by company insiders as they can provide insights into the executive's view of the company's current valuation and future prospects.

The details of the transaction, including the specific number of shares sold at each price point, are available upon request from the SEC staff, the issuer, or any security holder of the issuer.

It is worth noting that insider sales and purchases can be influenced by many factors and do not necessarily indicate the company's future performance. As with any insider transaction, market participants may view the sale with interest as they assess their own investment in Fox Factory Holding Corp.

For further details on the trade, interested parties may refer to the full Form 4 filing publicly available from the SEC.

In other recent news, Fox Factory Holding Corporation reported its first quarter fiscal 2024 earnings with a revenue of $333.5 million and adjusted earnings per share (EPS) of $0.29, surpassing analysts' estimate of $0.20. Despite this, the company experienced a decrease in net sales by 16.6% and a net loss of $3.5 million. Contributing to these challenges were a 17% decline in sales within its Powered Vehicle Group (PVG) and a 27% reduction in sales in the Aftermarket Applications Group (AAG).

In response to these developments, BofA Securities adjusted its outlook on Fox Factory, reducing the price target to $48 from the previous $55, while maintaining a neutral position on the company's stock. This adjustment reflects the current market conditions and the company's performance in the first quarter of 2024. Despite the sales challenges in both the PVG and AAG segments, the company's long-term growth strategy remains intact.

Looking forward, Fox Factory forecasts sales between $1.53 billion to $1.61 billion for the full year 2024, with an adjusted EPS projected to be in the range of $2.30 to $2.55. The company anticipates industry recovery in the bike market by Q4 and is excited about new product launches in 2025. These recent developments highlight the ongoing efforts of Fox Factory to navigate market challenges while maintaining a positive outlook for the future.

InvestingPro Insights

In light of the recent insider transaction at Fox Factory Holding Corp (NASDAQ:FOXF), where President Thomas L. Fletcher sold shares, it's pertinent to consider the company's financial health and market performance. According to InvestingPro data, Fox Factory has a market capitalization of approximately $1.87 billion, with a price-to-earnings (P/E) ratio of 25.07, reflecting investor sentiment about the company's earnings potential.

The company's revenue for the last twelve months as of Q1 2024 was reported at $1.397 billion, indicating a decline of 13.95% from the previous period. This contraction in revenue may be of interest to investors considering the insider sale. Additionally, Fox Factory's stock price has seen a significant drop of over 51% from the previous year, which aligns with an InvestingPro Tip highlighting the stock's considerable volatility and recent decline in value.

However, there are positive aspects to consider. Fox Factory's liquid assets exceed its short-term obligations, suggesting financial stability in covering current liabilities. Moreover, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. These factors could provide some reassurance to investors amidst the current market dynamics.

For investors seeking deeper insights, there are additional InvestingPro Tips available on the platform, which can be accessed by visiting https://www.investing.com/pro/FOXF. As a special offer, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to exclusive tips and data that can help in making informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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