LATHAM, NY—Gloe Oliver C., the Chief Financial Officer of Latham Group, Inc. (NASDAQ:SWIM), recently sold a portion of the company's common stock. According to a filing with the Securities and Exchange Commission, Oliver sold 10,216 shares at a price of $6.44 per share. The total transaction amounted to $65,791.
This sale was part of an automatic "sell-to-cover" transaction executed to cover taxes on restricted stock units (RSUs) that vested on October 30, 2024. Following the transaction, Oliver holds 282,706 shares of Latham Group stock.
In other recent news, Latham Group has been making significant strides despite challenging market conditions. Stifel, a financial services firm, recently maintained a Buy rating on Latham Group, while raising its price target from $6.80 to $7.00, reflecting confidence in the company's financial prospects. The firm's analyst highlighted the company's upcoming investor meetings featuring CEO Scott Rajeski and CFO Oliver Gloe.
The company's Q2 2024 results showed a 9.6% decrease in net sales, countered by an impressive 400 basis point increase in adjusted EBITDA margin. This was attributed to effective restructuring, cost management strategies, and lower raw material costs. Latham Group's net income rose to $5.4 million, a significant improvement from a loss in the previous year. The company also adjusted its full-year EBITDA guidance upwards by $15 million.
Latham Group's acquisition of Coverstar Central is expected to enhance sales of automatic safety covers and improve margins, despite a projected 15% decline in new pool starts. These developments underscore Latham Group's robust financial position, with $90.8 million in cash and $282.4 million in total debt. Stifel's revised stock price target and sustained Buy rating indicate a belief that Latham Group is well-positioned to outperform within its sector.
InvestingPro Insights
While Latham Group's CFO Gloe Oliver C. recently sold shares as part of a tax-related transaction, investors might be interested in the company's current financial position and market performance. According to InvestingPro data, Latham Group has shown impressive stock performance, with a 183.84% price total return over the past year and a strong 132.14% return over the last six months.
Despite recent revenue challenges, with a 14.66% decline in the last twelve months, the company maintains a solid gross profit margin of 29.28%. An InvestingPro Tip suggests that analysts have revised their earnings upwards for the upcoming period, potentially indicating positive expectations for the company's financial performance.
Latham Group's market capitalization stands at $765.12 million, with a P/E ratio of 63.73. This relatively high earnings multiple aligns with another InvestingPro Tip, which notes that the company is trading at a high earnings multiple. However, it's worth noting that the PEG ratio of 0.38 suggests the stock might be undervalued relative to its growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Latham Group, providing a deeper understanding of the company's financial health and market position.
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