Latham Group (NASDAQ:SWIM) Announces Earnings Results, Hits Estimates

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) posted 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. Latham Group had a negative return on equity of 3.36% and a negative net margin of 2.54%. The business had revenue of $172.64 million during the quarter, compared to analysts' expectations of $173.51 million. Latham Group updated its FY 2025 guidance to EPS.

Latham Group Stock Up 0.5%

Shares of SWIM stock traded up $0.04 during trading on Friday, reaching $7.35. The company's stock had a trading volume of 120,417 shares, compared to its average volume of 619,808. Latham Group has a one year low of $4.56 and a one year high of $8.41. The business has a fifty day moving average price of $6.43 and a 200-day moving average price of $6.31. The company has a market cap of $854.72 million, a price-to-earnings ratio of -61.24 and a beta of 1.72. The company has a quick ratio of 1.50, a current ratio of 2.55 and a debt-to-equity ratio of 0.80.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other news, Director James E. Cline sold 4,417 shares of the stock in a transaction dated 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 transaction, the director directly owned 189,251 shares in the company, valued at $1,220,668.95. This represents a 2.28% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 8.60% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Latham Group stock. Empowered Funds LLC increased its holdings in shares of Latham Group, Inc. (NASDAQ:SWIM - Free Report) by 7.4% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 405,207 shares of the company's stock after acquiring an additional 27,916 shares during the quarter. Empowered Funds LLC owned about 0.35% of Latham Group worth $2,605,000 as of its most recent filing with the SEC. Hedge funds and other institutional investors own 83.95% of the company's stock.

Latham Group Company Profile

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.