PRSU

Pursuit ($PRSU) President & Directors Signal 'Synchronized Buy' Amid 20% Decline - Hidden Opportunity?

11/12/2025 21:30

Pursuit Attractions and Hospitality ($PRSU) executives have been actively purchasing company shares during recent price declines, drawing market attention. Particularly noteworthy is the November 10 synchronized buying by President David Barry, who purchased $74,803 worth (2,245 shares), and Director Joshua Schechter, who bought $34,000 worth (1,000 shares), signaling strong management confidence. Pursuit operates hospitality facilities, attractions, restaurants, and transportation across North America and Iceland. Founded in 1926, the company rebranded from Viad Corporation in January 2025 to emphasize its focus on experiential travel. It owns iconic attractions like Banff Gondola and Sky Lagoon, and recently expanded into Costa Rica. The timing of insider purchases is significant given $PRSU's price trajectory. After reaching highs of $44-45 in October 2024, the stock has declined to the mid-$30s range, down approximately 20.7% over the past year, contrasting sharply with the S&P 500's 14.39% gain. The concentrated buying by executives at these lower levels - following Director Jill Bright's 1,000-share purchase at $36.77 in August - suggests management views current prices as a clear undervaluation. From a business perspective, management's confidence appears well-founded. Q3 revenue of $241 million represented 32.2% year-over-year growth, exceeding analyst expectations by 7.1%. Adjusted EBITDA of $117.4 million delivered a robust 48.7% margin. Key growth drivers included the reopening of wildfire-affected Jasper properties and 9% pricing increases at flagship attractions. The company's aggressive expansion strategy adds further context. The July acquisition of Costa Rica's Tabacon thermal resort for $111 million secured year-round revenue streams, while October's $100 million credit facility increase extended to 2030 provides growth capital. These moves signal ambition beyond mere maintenance of current operations. However, investor caution has merit. Despite revenue growth, the company posted a net loss of $97.31 million ($0.84 per share loss). While the 43.6% operating margin appears healthy, the bottom-line losses - likely from non-cash charges or growth investments - remain concerning. High volatility (beta 1.50) and travel industry cyclicality add risk dimensions. Yet structural travel industry recovery trends favor Pursuit. Post-pandemic 'experience consumption' demand surge benefits the company's premium natural attractions. Strong Canadian tourism recovery and pricing power at exclusive properties like Sky Lagoon support this thesis. Key indicators to monitor include 2026 early booking trends and profitability improvements following facility renovations. Management raised full-year 2025 EBITDA guidance to approximately $119 million, well above the $114 million analyst consensus. If achieved alongside narrowing losses, current insider buying could mark a meaningful bottom signal. Conversely, risks include macroeconomic deterioration reducing travel demand or slower-than-expected profitability improvements. While the 24% debt ratio remains healthy, continued large investments amid persistent cash flow pressures could necessitate additional financing. The 8.1% short interest reflects some bearish sentiment. Overall, Pursuit exhibits a stark disconnect between growing operations and lagging stock performance. Executive buying clusters signal confidence in bridging this gap, with the synchronized November 10 purchases suggesting coordinated conviction. Analyst price targets of $38-44 indicate substantial upside potential from current levels, though travel industry volatility and ongoing losses warrant expectations of gradual rather than explosive value realization.