Leslie's, Inc. (NASDAQ:LESL) director Jonathan S. Estep has recently increased his stake in the company, purchasing 17,200 shares of common stock at a price of $2.90 per share, totaling $49,880. This transaction, dated September 3, 2024, was disclosed in a Form 4 filing with the Securities and Exchange Commission.
The purchase reflects Estep's growing investment in the retail specialty store chain, which is known for its range of swimming pool supplies and related products. Following the acquisition, Estep's total ownership in Leslie's, Inc. has risen to 24,680 shares of common stock.
Investors often monitor insider transactions as they provide insights into how executives and directors view the company's stock value and future prospects. While the reasons behind Estep's purchase are not detailed in the filing, such transactions can sometimes be interpreted as a sign of confidence in the company's performance and outlook.
Leslie's, Inc. has not provided any official comment on the transaction, and it remains one of the many purchases and sales of company stock that occur regularly within the market. Shareholders and potential investors in Leslie's, Inc. can stay informed about insider transactions through the company's SEC filings and other public disclosures.
In other recent news, Leslie's Inc. witnessed significant developments. Amid a leadership change, Leslie's Inc. maintained its Hold rating from Jefferies and its Outperform rating from Wolfe Research. Jason McDonell, with his extensive experience from Advance Auto Parts (NYSE:AAP) and PepsiCo (NASDAQ:PEP), will assume the CEO role from September 9, 2024, replacing Michael Egeck.
In the financial sphere, Leslie's reported a 7% year-over-year decrease in total sales for Q3 fiscal 2024, amounting to $570 million. The gross margin dropped to 40%, resulting in a gross profit of $229 million, and an adjusted EBITDA of $109 million.
The company also announced amendments to its corporate bylaws to streamline procedures for stockholder proposals and director nominations. This move is part of Leslie's ongoing efforts to enhance clarity and consistency in its operations. Despite the decline in sales, the company remains focused on strategic initiatives for long-term growth, planning to open two new stores by year-end and improve its cost structure. These are recent developments that investors should consider.
InvestingPro Insights
Following the recent insider purchase by Leslie's, Inc. (NASDAQ:LESL) director Jonathan S. Estep, investors are closely analyzing the company's financial health and market performance. According to InvestingPro data, Leslie's Inc. currently has a market capitalization of approximately $552.89 million, which offers a snapshot of the company's size and market value.
Despite this insider confidence, Leslie's is dealing with several challenges. The company is trading at a high earnings multiple, with a P/E ratio of 185.31, suggesting that its stock price is relatively expensive compared to its earnings. However, it is important to note that the adjusted P/E ratio for the last twelve months as of Q3 2024 stands at 67.33, which could indicate expectations of future growth or a reassessment of the company's earnings potential.
Revenue trends also provide critical insights. Leslie's has experienced a revenue decline of 8.69% over the last twelve months as of Q3 2024. This contraction is a significant metric for investors to consider, as it may impact future profitability and cash flow. Nevertheless, an InvestingPro Tip highlights that the valuation implies a strong free cash flow yield, which could mean the company is generating sufficient cash to support operations and investments after accounting for capital expenditures.
For those considering Leslie's Inc. as an investment opportunity, the InvestingPro platform offers an additional 13 tips on the company, providing a more comprehensive analysis of its performance and potential. These insights can be valuable for making informed investment decisions.
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