Latham Group (NASDAQ:SWIM) Stock Price Down 10.1% - Should You Sell?

Key Points

• Shares fell 10.1% intraday to about $6.47 with volume up ~7%, reflecting short‑term volatility and profit‑taking after a prior sharp rally.
• Latham beat Q4 estimates (revenue ~$99.95M vs. ~$95.9M and adjusted EPS -$0.06 vs. -$0.09) and raised FY2026 revenue guidance to $580–$610M, citing the Sand States expansion and the Freedom Pools acquisition, prompting several analysts to lift price targets.
• Despite the beat, valuation and cash‑flow concerns (P/E ~71.8 and weaker free cash flow) plus a mixed set of analyst ratings and an average price target near $7.33 suggest downside/valuation risk may cap near‑term upside.

Latham Group, Inc. (NASDAQ:SWIM - Get Free Report) dropped 10.1% during trading on Thursday . The company traded as low as $6.42 and last traded at $6.47. Approximately 1,113,266 shares traded hands during mid-day trading, an increase of 7% from the average daily volume of 1,041,352 shares. The stock had previously closed at $7.20.

Key Latham Group News

Here are the key news stories impacting Latham Group this week:

• Positive Sentiment: Q4 results beat consensus: revenue of ~$99.95M vs. ~$95.9M est. and adjusted EPS better than expected (reported -$0.06 vs. -$0.09 est.), with improving margins and year‑over‑year progress. MarketBeat Q4 Results
• Positive Sentiment: Company raised FY2026 revenue guidance to $580M–$610M (above consensus) and highlighted growth initiatives including the Sand States expansion and the Freedom Pools acquisition — a constructive outlook for top‑line and market share gains. Guidance & Growth Initiatives
• Positive Sentiment: Analyst reactions were generally supportive: Stifel raised its PT to $9.50 (buy) and Barclays lifted its PT to $8.00 (equal‑weight), signaling institutional recognition of the company’s better results and outlook. Analyst Price Target Moves
• Neutral Sentiment: Management commentary and slides are available (earnings call transcript and presentation) for investors digging into drivers behind the beat and guidance. Earnings Call Transcript Slide Deck
• Neutral Sentiment: Recent media coverage highlighted a prior sharp stock rally following the results (large intraday move), increasing short‑term volatility and potential for profit‑taking. News Coverage of Stock Move
• Negative Sentiment: Valuation and cash‑flow concerns: analysts and commentary warn that while EBITDA/EPS projections look strong, free‑cash‑flow remains weaker and sector multiples are elevated — creating valuation risk that can cap near‑term upside. Valuation Risk Analysis

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. William Blair reiterated an "outperform" rating on shares of Latham Group in a research note on Wednesday. Barclays lifted their price target on shares of Latham Group from $7.00 to $8.00 and gave the company an "equal weight" rating in a research report on Wednesday. Stifel Nicolaus increased their price target on Latham Group from $8.75 to $9.50 and gave the stock a "buy" rating in a research report on Wednesday. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Latham Group in a research report on Monday, December 29th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Latham Group has an average rating of "Hold" and an average price target of $7.33.

Latham Group Stock Performance

The company has a debt-to-equity ratio of 0.68, a current ratio of 2.43 and a quick ratio of 1.72. The stock has a market cap of $753.62 million, a P/E ratio of 71.78 and a beta of 1.70. The stock has a 50-day simple moving average of $6.56 and a 200-day simple moving average of $7.06.

Latham Group (NASDAQ:SWIM - Get Free Report) last announced its quarterly earnings results on Tuesday, March 3rd. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.03. The company had revenue of $99.95 million for the quarter, compared to analyst estimates of $95.86 million. Latham Group had a net margin of 2.04% and a return on equity of 2.81%. Research analysts forecast that Latham Group, Inc. will post -0.04 earnings per share for the current year.

Hedge Funds Weigh In On Latham Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Rhumbline Advisers lifted its holdings in shares of Latham Group by 2.7% during the second quarter. Rhumbline Advisers now owns 63,639 shares of the company's stock worth $406,000 after purchasing an additional 1,672 shares during the period. Deutsche Bank AG lifted its holdings in Latham Group by 5.1% during the 4th quarter. Deutsche Bank AG now owns 35,682 shares of the company's stock worth $227,000 after buying an additional 1,721 shares during the period. Squarepoint Ops LLC lifted its holdings in Latham Group by 5.5% during the 3rd quarter. Squarepoint Ops LLC now owns 35,978 shares of the company's stock worth $274,000 after buying an additional 1,873 shares during the period. BNP Paribas Financial Markets grew its position in shares of Latham Group by 83.9% in the 2nd quarter. BNP Paribas Financial Markets now owns 4,211 shares of the company's stock valued at $27,000 after buying an additional 1,921 shares during the last quarter. Finally, Arizona State Retirement System increased its stake in shares of Latham Group by 16.4% in the third quarter. Arizona State Retirement System now owns 13,765 shares of the company's stock valued at $105,000 after buying an additional 1,939 shares during the period. 83.95% of the stock is currently owned by institutional investors and hedge funds.

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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