Benzinga - by Benzinga Insights, Benzinga Staff Writer.
David V Singer, Board Member at Brunswick (NYSE:BC), disclosed an insider purchase on February 2, based on a new SEC filing.
What Happened: In a Form 4 filing on Friday with the U.S. Securities and Exchange Commission, it was disclosed that Singer bought 932 shares of Brunswick, amounting to a total of $75,193.
Tracking the Friday's morning session, Brunswick shares are trading at $84.49, showing a down of 0.0%.
Discovering Brunswick: A Closer Look Brunswick is a leading manufacturer in the marine recreation industry. The company has more than 60 brands delivering products across propulsion (outboard, sterndrive, and inboard engines, propulsion-related controls, rigging, and propellers), parts, accessories, and technology, and boats (including well-known brands like Boston Whaler and Sea Ray). It also owns numerous Freedom Boat Club (shared ownership) locations as well as Boateka, which facilitates transactions in the used boat market. Brunswick's focus surrounds building the innovative marine and recreational experiences, technologies, and connections supported by quality and innovation.
Brunswick: Financial Performance Dissected Negative Revenue Trend: Examining Brunswick's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -6.16% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Key Profitability Indicators:
- Gross Margin: The company shows a low gross margin of 27.91%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): Brunswick's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.61.
Analyzing Market Valuation:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 12.0, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.91, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 7.41, Brunswick presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
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Navigating the Impact of Insider Transactions on Investments Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Brunswick's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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