LATHAM, N.Y.—Sanjeev Bahl, Chief Operating Officer of Latham Group, Inc. (NASDAQ:SWIM), recently sold shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The transaction, which took place on November 11, involved the sale of 11,750 shares at prices ranging from $5.90 to $5.94, totaling $69,376.
In addition to the sale, Bahl also acquired 25,904 shares through a stock appreciation right exercise, priced at $3.24 per share. Following these transactions, Bahl holds 262,811 shares directly.
Latham Group, a leading manufacturer of in-ground residential swimming pools and pool accessories, continues to see active trading from its executives as it navigates the market landscape.
In other recent news, Latham Group, North America’s largest in-ground pool manufacturer, reported its third quarter financial results for 2024, revealing a decrease in net sales by 6.4% year-over-year to $150.5 million, but an improvement in gross margin due to cost reduction initiatives. The company also announced the acquisition of Coverstar Central, a move expected to enhance net sales and adjusted EBITDA margins. The acquisition is predicted to add $20 million in net sales and improve adjusted EBITDA margins by about 140 basis points annually.
Latham Group has adjusted its full-year guidance, now projecting net sales between $500 million and $510 million and adjusted EBITDA between $77 million and $83 million. Despite a challenging market, the company is investing in sales, marketing, and product development to capture market share when conditions improve.
These recent developments come amid the company’s anticipation of a 15% decline in new pool starts for 2024, and a focus on growth opportunities in the outdoor living category, targeting the “Sand States” for market expansion. The company’s optimism for 2025 hinges on improved consumer confidence and potential reductions in interest rates.
InvestingPro Insights
As Latham Group’s COO Sanjeev Bahl adjusts his stake in the company, investors may find value in examining the broader financial picture. According to InvestingPro data, Latham Group’s market capitalization stands at $676.4 million, reflecting its position in the residential swimming pool industry.
Despite recent insider selling, InvestingPro Tips highlight that Latham Group’s net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook is tempered by the fact that 4 analysts have revised their earnings downwards for the upcoming period, suggesting some caution in near-term expectations.
The company’s financial health appears stable, with InvestingPro data showing that liquid assets exceed short-term obligations. This liquidity position could provide Latham Group with flexibility as it navigates market challenges, including the analysts’ anticipation of sales decline in the current year.
Investors should note that Latham Group’s stock has demonstrated significant volatility, with a high return over the last year and a large price uptick over the last six months. The stock’s price-to-earnings ratio of 58.79 indicates a high earnings multiple, which aligns with the InvestingPro Tip suggesting the company is trading at a high EBIT valuation multiple.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Latham Group, providing deeper insights into the company’s financial position and market performance.
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