Latham Group (NASDAQ:SWIM) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Latham Group to “strong sell” from “hold,” adding to broadly negative analyst sentiment. The stock has a consensus “Reduce” rating and an average price target of $7.50.
• Latham Group shares opened at $7.48, up 3.6%, despite the downgrade and recent earnings miss. Quarterly EPS was $0.11 versus the $0.16 consensus estimate, although revenue of $197.47 million exceeded expectations.
• Company insiders recently bought shares, including purchases by a director and the CFO, while institutional investors own a substantial 83.95% of the stock.

Latham Group (NASDAQ:SWIM - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Thursday,Zacks.com reports.

Several other equities analysts have also recently commented on the stock. Wall Street Zen cut shares of Latham Group from a "buy" rating to a "hold" rating in a research report on Sunday, April 12th. Barclays cut their price objective on Latham Group from $8.00 to $7.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 8th. The Goldman Sachs Group reaffirmed a "sell" rating on shares of Latham Group in a report on Wednesday, May 6th. Bank of America dropped their target price on shares of Latham Group from $7.00 to $6.00 and set an "underperform" rating on the stock in a report on Monday, April 20th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Latham Group in a report on Tuesday. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average target price of $7.50.

Latham Group Trading Up 3.6%

SWIM opened at $7.48 on Thursday. The firm's 50 day moving average is $5.89 and its 200-day moving average is $5.96. Latham Group has a 52-week low of $4.64 and a 52-week high of $8.97. The company has a quick ratio of 1.16, a current ratio of 1.88 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $880.02 million, a P/E ratio of 149.60, a P/E/G ratio of 1.48 and a beta of 1.65.

Latham Group (NASDAQ:SWIM - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.11 earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.05). The firm had revenue of $197.47 million for the quarter, compared to analyst estimates of $188.39 million. Latham Group had a net margin of 0.92% and a return on equity of 1.32%. Analysts expect that Latham Group will post 0.17 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director James E. Cline purchased 50,000 shares of Latham Group stock in a transaction dated Tuesday, May 19th. The stock was bought at an average price of $4.84 per share, with a total value of $242,000.00. Following the completion of the acquisition, the director owned 100,000 shares in the company, valued at $484,000. The trade was a 100.00% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Oliver C. Gloe acquired 15,050 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The stock was purchased at an average cost of $4.90 per share, for a total transaction of $73,745.00. Following the acquisition, the chief financial officer owned 540,758 shares in the company, valued at approximately $2,649,714.20. This trade represents a 2.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 3.32% of the company's stock.

Institutional Investors Weigh In On Latham Group

A number of hedge funds have recently made changes to their positions in the business. Wellington Management Group LLP grew its stake in shares of Latham Group by 216.4% in the fourth quarter. Wellington Management Group LLP now owns 6,749,349 shares of the company's stock worth $42,858,000 after purchasing an additional 4,616,367 shares in the last quarter. BlackRock Inc. acquired a new stake in Latham Group in the second quarter worth about $23,532,000. Citadel Advisors LLC lifted its holdings in Latham Group by 206.5% in the third quarter. Citadel Advisors LLC now owns 4,620,114 shares of the company's stock worth $35,159,000 after purchasing an additional 3,112,708 shares during the period. UBS Group AG increased its stake in Latham Group by 1,709.2% during the 4th quarter. UBS Group AG now owns 955,867 shares of the company's stock valued at $6,070,000 after buying an additional 903,032 shares during the period. Finally, Vanguard Group Inc. lifted its stake in shares of Latham Group by 36.7% in the 3rd quarter. Vanguard Group Inc. now owns 3,257,228 shares of the company's stock worth $24,788,000 after acquiring an additional 873,903 shares during the period. Institutional investors own 83.95% of the company's stock.

About Latham Group

Latham Group, Inc designs, manufactures and supplies a broad range of aquatic products and services for residential and commercial applications. Offerings include fiberglass and vinyl-liner pool shells, commercial water park structures, water slides, surf simulators, pumps, filters, heaters and sanitation systems. The company also provides parts, equipment and technical support for pool installation, maintenance and repair.

Operating across three core segments—commercial, residential and aftermarket—Latham delivers turnkey aquatic facilities and attractions for municipal, hospitality and resort clients, offers packaged pool kits and equipment packages to builders and dealers, and supplies replacement parts, service contracts and technical assistance to support ongoing pool operations.

Headquartered in the United States, Latham Group maintains manufacturing and distribution centers throughout North America and Europe.

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