Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Joseph W McClanathan, Director at Brunswick (NYSE:BC), disclosed an insider purchase on February 2, based on a new SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday unveiled that McClanathan made a notable purchase of 894 shares of Brunswick, valuing at $72,127.
Monitoring the market, Brunswick's shares down by 0.0% at $84.49 during Friday's morning.
All You Need to Know About Brunswick 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.
Financial Insights: Brunswick Revenue Growth: Brunswick's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -6.16%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Exploring Profitability:
- Gross Margin: The company faces challenges with a low gross margin of 27.91%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Brunswick's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.61.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 12.0 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 0.91 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 7.41, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
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Why Insider Activity Matters in Finance While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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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