Brunswick Director Trades Company's Stock

A new SEC filing reveals that David V Singer, Director at Brunswick BC, made a notable insider purchase on May 1,.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled that Singer made a notable purchase of 934 shares of Brunswick, valuing at $75,317.

At Thursday morning, Brunswick shares are down by 0.29%, trading at $80.1.

Delving into Brunswick's Background

Brunswick is a leading manufacturer in the marine recreation industry. The firm has more than 60 brands delivering products across propulsion (outboard, sterndrive, and inboard engines, propulsion-related controls, rigging, and propellers), parts, accessories, and technology, and boats (including well-known brands like Boston Whaler and Sea Ray). It also owns numerous Freedom Boat Club (shared ownership) locations as well as Boateka, which facilitates transactions in the used boat market. Brunswick's focus surrounds building the innovative marine and recreational experiences, technologies, and connections supported by quality and innovation.

Brunswick: A Financial Overview

Revenue Growth: Brunswick's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 0.23%. This indicates a substantial increase in the company's 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.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 27.37%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Brunswick's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.99.

Debt Management: Brunswick's debt-to-equity ratio stands notably higher than the industry average, reaching 1.38. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Brunswick's P/E ratio of 14.42 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.93 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 8.64, Brunswick could be considered undervalued.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Why Insider Transactions Are Important

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Understanding Crucial Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals 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 Brunswick's Insider Trades.

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