Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On March 26, a substantial insider purchase was made by Eugene David Maher, President and CEO at Acushnet Hldgs (NYSE:GOLF), as per the latest SEC filing.
What Happened: Maher made a significant move by purchasing 2,413 shares of Acushnet Hldgs as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $154,407.
Acushnet Hldgs's shares are actively trading at $65.05, experiencing a down of 0.0% during Wednesday's morning session.
Discovering Acushnet Hldgs: A Closer Look Acushnet Holdings Corp is engaged in the design, development, manufacture, and distribution of golf products. Its product category includes golf balls, golf shoes, golf clubs, wedges, putters, golf gloves, golf gear and golf wear, of which key revenue is derived from the sales of golf balls and golf gloves. The operating segments of the company are Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear. Geographically, the company operates in the United States, EMEA, Japan, Korea and other countries, of which a majority of the revenue is generated from the operations in the United States.
Breaking Down Acushnet Hldgs's Financial Performance Decline in Revenue: Over the 3 months period, Acushnet Hldgs faced challenges, resulting in a decline of approximately -7.7% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Insights into Profitability:
- Gross Margin: The company excels with a remarkable gross margin of 50.8%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): With an EPS below industry norms, Acushnet Hldgs exhibits below-average bottom-line performance with a current EPS of -0.36.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: Acushnet Hldgs's current Price to Earnings (P/E) ratio of 22.13 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.84 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Acushnet Hldgs's EV/EBITDA ratio of 14.16 exceeds industry averages, indicating a premium valuation in the market
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Why Insider Transactions Are Key in Investment Decisions While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
A Deep Dive into Insider Transaction Codes Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Acushnet Hldgs's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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