Insider Buying

Insider Buying Report: Leslie’s Inc (LESL:US)

Leslie’s Inc
(LESL:US)
12 months:
-22%
Activity:
Bullish
Pattern:
Purchase from CEO and CFO
News:
Q1 results
Leslie’s Inc
(LESL:US)
12 months:
-22%
Activity:
Bullish
Pattern:
Purchase from CEO and CFO
News:
Q1 results
A little girl jumps in the pool, and a little boy enjoys the pool, with the Leslie's Inc. emblem on the right side.

Top-level insiders such as C-suite executives tend to have a good understanding of their companies’ operating activities. If they’re buying company stock, it’s often a sign that the outlook for the stock is attractive.

Here, we are going to highlight some interesting buying activity from top-level insiders at Leslie’s Inc (LESL:US). Leslie’s is the biggest player in the US swimming pool and spa market. The company serves commercial, professional and residential clients, offering maintenance products and accessories. It’s listed on the Nasdaq Stock Exchange and currently has a market capitalization of $3.76 billion.

Leslie’s Inc: Insider Buying

Our insider transaction data shows that on February 8, two insiders at Leslie’s bought stock. Those who bought shares were:

  • CEO Michael Egeck (101,700 shares @ $19.66 per share)
  • CFO Steven Weddell (25,000 shares @ $19.80 per share)

In total, the two insiders spent around $2.5 million on Leslie’s stock.

The graph represents Leslie’s Inc' price history, with significant buy and sell events highlighted.

Large Transaction

This insider activity is worth highlighting for a couple of reasons.

First of all, the monetary amount spent on the trades ($2.5 million) suggests to us that the insiders are very confident that the shares are undervalued at present. Our insider transaction data shows that there have not been any insider purchases at the company for a lengthy period of time. This suggests that the insiders have picked their entry points carefully, and that they have spotted a good opportunity to pick up stock.

Secondly, the CEO and CFO are likely to know their company better than anyone else and have the ability to spot key trends early. The fact that the two insiders have purchased stock together is very bullish, in our view.

Strong Sales Growth

Leslie’s saw strong sales growth during Q1 2022 which led the group to raise sales guidance for the full year by $20 million.

Reported sales of $184.8 million in Q1 were a record for the quarter and represented an increase of 27.5% on the prior-year quarter. Meanwhile, adjusted EBITDA moved from a loss of $0.2 million in Q1 2021 up to a profit of $1.1 million in the first quarter of this year.

During the quarter, the company repurchased 7.5 million shares and it still has the authorization to purchase another $148 million worth of company stock.

As well as upgrading the 2022 sales figure, Leslie’s also increased gross profit guidance by $10 million, adjusted EBITDA by $5 million, and adjusted earnings per share by $0.03.

"We are very encouraged by our start to Fiscal 2022. Continued industry tailwinds, the competitive advantages derived from our integrated platform of physical and digital assets, and strong execution of our strategic growth initiatives drove record first quarter results. With this strong start, we remain confident in our ability to continue to perform at a high level for the balance of the year," said CEO Mike Egeck.

Considering the latest figures from the group, we see the recent insider purchases of stock at the company as bullish.

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