Latham Group (NASDAQ:SWIM) Announces Earnings Results

Key Points

• Latham Group reported quarterly earnings of $0.13 EPS, meeting analyst expectations but showing a negative net margin of 3.13% and a return on equity of -4.01%.
• The company’s stock price rose to $6.84 following the earnings release, with an average price target from analysts set at $7.56.
• Insider trading revealed that Director James E. Cline sold shares valued at approximately $28,490, indicating a slight decrease in insider ownership.

Latham Group (NASDAQ:SWIM - Get Free Report) released its earnings results on Tuesday. The company reported $0.13 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.13, Zacks reports. The company had revenue of $172.64 million for the quarter, compared to analyst estimates of $173.51 million. Latham Group had a negative net margin of 2.54% and a negative return on equity of 3.36%. Latham Group updated its FY 2025 guidance to EPS.

Latham Group Stock Up 1.0%

Shares of Latham Group stock traded up $0.07 during trading on Friday, hitting $7.38. 660,449 shares of the stock were exchanged, compared to its average volume of 589,005. The stock has a market cap of $858.81 million, a price-to-earnings ratio of -61.49 and a beta of 1.72. The firm's 50-day moving average price is $6.47 and its 200 day moving average price is $6.31. Latham Group has a 12-month low of $4.56 and a 12-month high of $8.41. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.55 and a quick ratio of 1.50.

Wall Street Analyst Weigh In

Separately, The Goldman Sachs Group lifted their price objective on shares of Latham Group from $4.00 to $4.50 and gave the stock a "sell" rating in a research report on Thursday, May 8th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $7.56.

Insider Activity

In other news, Director James E. Cline sold 4,417 shares of Latham Group stock in a transaction on Monday, May 12th. The shares were sold at an average price of $6.45, for a total transaction of $28,489.65. Following the completion of the sale, the director directly owned 189,251 shares of the company's stock, valued at approximately $1,220,668.95. The trade was a 2.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 8.60% of the company's stock.

Institutional Investors Weigh In On Latham Group

A hedge fund recently raised its stake in Latham Group stock. Jane Street Group LLC increased its stake in shares of Latham Group, Inc. (NASDAQ:SWIM - Free Report) by 27.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 24,894 shares of the company's stock after acquiring an additional 5,315 shares during the quarter. Jane Street Group LLC's holdings in Latham Group were worth $160,000 at the end of the most recent quarter. Institutional investors own 83.95% of the company's stock.

About Latham Group

Latham Group, Inc designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names.