ONEW

OneWater Marine($ONEW) Executives Load Up With $1.2M in Stock Near 52-Week Lows, Signaling Confidence Despite Heavy Debt Burden

05/22/2025 20:25

Top executives at OneWater Marine ($ONEW) have made substantial stock purchases as shares trade near 52-week lows, signaling insider confidence in the company's long-term prospects despite ongoing financial challenges. The most notable recent transaction came from COO Anthony Aisquith, who purchased a total of 72,482 shares worth approximately $890,000 on May 6-7, 2025. While these transactions appear to have been reported twice in the same filing, the actual volume remains significant. Aisquith's substantial buy occurred near average prices of $12.30 per share, close to the stock's 52-week low. CEO Philip Singleton Jr. also acquired 15,674 shares (approximately $228,000) across May 20-21, while board member Steven Roy purchased 5,001 shares (about $61,000) on May 7. These transactions continue a pattern of insider buying that has persisted throughout the year, following earlier significant purchases by Director Jeffrey Lamkin that began in August 2024. This cluster of insider buying comes as OneWater Marine's stock has declined approximately 50% from year-ago levels. Shares currently trading in the $14-15 range are substantially below the $30+ levels seen in June 2024. Based in Buford, Georgia, OneWater Marine is a specialty retail company in the recreational marine products and services sector, operating approximately 96 retail locations and 10 distribution centers across 19 states. The company sells new and pre-owned recreational boats and yachts, marine parts and accessories, offers boat repair and maintenance, storage and marina services, as well as financing and insurance products. However, the company has been facing headwinds. In its fiscal Q2 2025 results released May 1, OneWater reported adjusted earnings of $0.13 per share, down significantly from $0.67 in the year-ago period. Revenue declined 1% year-over-year to $483.52 million, missing analyst expectations of $497.72 million. The company carries a significant financial burden with a high debt-to-equity ratio of 281.81% and total debt estimated at $866 million. This, combined with persistent net losses, has raised concerns about the company's financial health. Yet not all news has been negative. Pre-owned boat segment revenue increased 14.1% year-over-year, while service and parts revenue grew 2.4%. Operating cash flow has also improved substantially from negative $129.77 million in 2023 to positive $34.84 million in 2024. These improvement signals may explain why executives remain optimistic about the company's long-term outlook. On an industry level, the recreational boating market has been under pressure from high interest rates and reduced consumer spending. However, expectations of interest rate cuts and resilience in the pre-owned boat market present positive signals. Citigroup upgraded MarineMax (a OneWater competitor) from neutral to buy in September, citing a "soft-landing" scenario. The magnitude and consistency of insider buying activity suggest OneWater Marine's management believes the current share price significantly undervalues the company. In Aisquith's case, the May purchases substantially increased his stake, while Singleton has steadily accumulated shares over the past nine months. Historically, cluster insider buying of this magnitude often indicates stock undervaluation and correlates with positive performance over the subsequent 12-18 months, particularly when a company's top executives and board members are putting their own money at stake. However, investors should recognize the substantial challenges facing OneWater Marine. High debt levels, earnings pressure, and the cyclical nature of the recreational boating industry could continue to weigh on shares in the near term. Even as insiders have been buying, some analysts have lowered their 12-month price targets for the company. The most recent median target stands at $17.00, down from higher levels in previous months. While continued stock purchases by management may indicate confidence about upcoming earnings releases or positive business trends, stronger financial performance will be needed to confirm the company can improve results and manage its debt burden in a challenging market environment. At this juncture, OneWater Marine needs to demonstrate more fundamental improvement than insider actions alone might suggest.

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