2iQ Insider Brief: Camping World Holdings (CWH: US)

Desislav Delchev 3 June 2020

Camping World Holdings (CWH: US)

12-month performance: +96%
Insider activity: Bullish
Buying pattern: Purchase from Chairman/CEO at higher price
Recent news: Q1 beat

Camping World Holdings is a leading American outdoor and camping retailer that specialises in selling recreational vehicles (RVs), RV parts and accessories, and RV services. Founded in 1966, it has grown to become one of the most well-known destinations for RV sales in the US, with over 200 stores across the country. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $2.0 billion.

We last covered CWH in late March when the stock was trading near $4.30. At the time, CWH had been hit hard by coronavirus uncertainty, however, we noticed that a number of top-level insiders – including Chairman and CEO Marcus Lemonis, President and COO Brent Moody, and CFO Melvin Flanigan – were buying shares, which is generally a bullish signal. As a result, we said that, in our view, the stock had “the potential to rebound.” Fast forward to today, and CWH shares now trade at $23 after the company recently posted better-than-expected Q1 results and declared a special dividend. That represents a gain of over 400% in less than three months.

campingworld chart                         Source: 2iQ Research

Looking at insider transaction activity, it’s interesting to see that Chairman and CEO Marcus Lemonis recently made another purchase of CWH stock. According to our records, the insider purchased 2,444 shares on 21 May at a price of $20.48 per share. This purchase suggests that the insider continues to see value in the stock, despite the fact that it has risen by around 500% since its March lows. Given this recent insider purchase, we think Camping World Holdings has the potential to keep rising.

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