Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In a recent SEC filing, it was revealed that J. Steven Whisler, Director at Brunswick (NYSE:BC), made a noteworthy insider purchase on May 1,.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Whisler purchased 941 shares of Brunswick. The total transaction amounted to $75,882.
The latest market snapshot at Thursday morning reveals Brunswick shares down by 0.0%, trading at $80.33.
All You Need to Know About Brunswick Brunswick is a leading manufacturer in the marine recreation industry. The firm 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 Milestones: Brunswick's Journey Revenue Growth: Over the 3 months period, Brunswick showcased positive performance, achieving a revenue growth rate of 0.23% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company shows a low gross margin of 27.37%, suggesting potential challenges 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 0.99.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.42 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.93, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 8.64, Brunswick could be considered undervalued.
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Understanding the Significance of Insider Transactions Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
The Insider's Guide to Important Transaction Codes When analyzing transactions, investors tend to focus on those in the open market, 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 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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