Company insiders are some of the most informed participants in the market. Research shows that their trading activity can provide powerful return signals.
In this article, we are going to highlight some recent insider buying at Camping World Holdings Inc (CWH:US). Camping World Holdings is a leading American outdoor and camping retailer that specializes in selling recreational vehicles (RVs). The company is listed on the New York Stock Exchange and currently has a market capitalization of $2.6 billion.
Insider buyingIn August, Chairman and CEO Marcus Lemonis purchased Camping World Holdings stock a number of times. Indeed, Form 4 filings show that the insider purchased CWH stock on 13 different occasions, increasing his position from 447,423 shares to 517,096 shares. These purchases cost the insider a total of around $2.25 million.
Source: 2iQ Research
This insider transaction activity looks interesting for a number of reasons. Firstly, it’s a top-tier insider that has bought stock. Lemonis is likely to have an excellent understanding of the company’s near-term prospects.
Secondly, Lemonis’ last few purchases have been timed very well. The insider purchased a large amount of CWH shares in March when the share price was near $10 and then purchased more shares in June when the stock was just above $20. Since then, the stock has risen as high as $42.
Good Q2 results
Camping World Holdings issued a healthy set of second quarter results in August. For the quarter, revenue was up 9% while net income increased 210%. The company also declared a special dividend in August. Clearly, the company is benefiting from international travel restrictions.
Recently, however, the stock has corrected on the back of institutional selling. Lemonis’ purchases suggest that he views this share price weakness as a buying opportunity. We see this insider buying as a bullish signal.