SWIM

Latham Group ($SWIM) CFO Buys 13,500 Shares Following Improved Results, While Insiders Show Mixed Outlook

05/16/2025 20:19

Latham Group Inc ($SWIM) Chief Financial Officer Oliver Gloe has purchased 13,500 shares of the company's stock on May 15, 2025. The transaction, valued at $82,350 with an average price of $6.10 per share, signals executive confidence amid recent price volatility for the small-cap pool manufacturer. Latham Group is one of North America's leading swimming pool manufacturers, specializing in fiberglass pools and related accessories. With a market capitalization of approximately $663.4 million, the company has navigated the post-pandemic home leisure market boom but has recently faced challenges due to rising interest rates and consumer spending constraints. The CFO's purchase comes on the heels of Latham's better-than-expected first-quarter 2025 results, announced on May 6. The company reported a loss of 3 cents per share, outperforming analyst expectations of a 5-cent loss. Revenue increased by 0.7% year-over-year to $111.42 million, slightly above the market forecast of $111.08 million. Notably, this marks Gloe's second insider purchase in six months, following his November 11, 2024, acquisition of 9,000 shares totaling $51,570 at $5.73 per share. Both purchases were made following earnings announcements, suggesting confidence in the company's medium to long-term outlook. However, not all insiders share this optimism. Director James Cline sold a total of 50,000 shares (approximately $300,000) across May 9 and May 12, while major institutional shareholders divested approximately 3.6 million shares worth $23.5 million in March, indicating mixed perspectives among company insiders. $SWIM's stock has exhibited significant volatility over the past six months. After reaching highs above $8 in mid-December 2024, the stock entered a downward trend, bottoming out at around $4.70 in mid-April 2025. May has seen a recovery to the $6 range, with the stock climbing as high as $6.67 on May 12 before moderating to current levels in the low $6 range. Unlike the company's fourth-quarter 2024 results, which fell short of expectations, the first-quarter 2025 performance showed signs of improvement. Analysts attribute this to cost-cutting initiatives and seasonal factors, as the pool industry typically experiences increased demand during the warmer spring and summer months. The analyst community maintains an average "buy" rating on Latham Group, with a median price target of $8.00, suggesting approximately 30% upside potential from current levels. However, concerns persist about the potential impact of economic uncertainty and housing market softness on demand for pool installations. As U.S. equity markets rebound on easing U.S.-China trade tensions and Federal Reserve rate cut expectations, consumer sentiment remains subdued due to inflation concerns, adding uncertainty to the growth outlook for consumer discretionary companies like Latham Group. Nevertheless, the CFO's consistent share purchases provide a potentially positive internal perspective on the company's medium-term prospects, drawing investor attention to this small-cap pool manufacturer.

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