Eugene David Maher, President and CEO at Acushnet Hldgs GOLF, reported an insider buy on September 24, according to a new SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Maher increased their investment in Acushnet Hldgs by purchasing 2,453 shares through open-market transactions, signaling confidence in the company’s potential. The total transaction value is $155,446.

Monitoring the market, Acushnet Hldgs‘s shares down by 0.09% at $63.74 during Wednesday’s morning.

Unveiling the Story Behind Acushnet Hldgs

Acushnet Holdings Corp is engaged in the design, development, manufacture, and distribution of golf products. Its product category includes golf balls, golf shoes, golf clubs, wedges, putters, golf gloves, golf gear and golf wear, of which key revenue is derived from the sales of golf balls and golf gloves. The operating segments of the company are Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear. Geographically, the company operates in the United States, EMEA, Japan, Korea and other countries, of which a majority of the revenue is generated from the operations in the United States.

Financial Milestones: Acushnet Hldgs’s Journey

Negative Revenue Trend: Examining Acushnet Hldgs’s financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -0.8% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Interpreting Earnings Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 54.36%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Acushnet Hldgs’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.12.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.87, caution is advised due to increased financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 21.55 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.74 is above industry norms, reflecting an elevated valuation for Acushnet Hldgs’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 13.77, the company’s market valuation exceeds industry averages.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Exploring Key Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Acushnet Hldgs’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.