Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at Thor Industries Inc (THO:US). Thor Industries is a leading American manufacturer of towable and motorized recreational vehicles (RVs). Founded in 1980, the company has grown to become the largest manufacturer of RVs in the world, generating sales of $12.3 billion in fiscal 2021. It’s listed on the New York Stock Exchange and currently has a market capitalization of $4.67 billion.
Thor Industries Inc: Insider Buying
Our insider transaction data shows that on April 5, board member James Ziemer bought 10,000 THO shares at a price of $80.53 per share. This trade cost the insider $805,295 and increased his holding to 29,835 shares.
This trade looks interesting to us for a number of reasons.
Firstly, Mr. Ziemer has considerable company and industry experience. Previously, he was the President and CEO of Harley Davidson from 2005-2009 and before that served as the company’s CFO. He has served on the board at Thor since 2010, so it’s likely that he knows the company very well.
Secondly, the purchase has increased the size of the insider’s holding by around 50%. The fact that the insider has boosted his stake by such a large percentage suggests that he is very confident that the stock is set to move higher.
Third, this is not the only big purchase here recently. Back in January, both Chairman Andrew Graves and Founder Peter Orthwein made large purchases. This tells us that those within the company are in agreement that the stock is undervalued right now.
Strong Financial Results
Thor posted an excellent set of results in March.
For the second quarter of fiscal 2022, net sales amounted to $3.88 billion, an increase of 42.1% year on year. Meanwhile, earnings per share came in at $4.79, an increase of 101.3% year on year, and well above the consensus forecast of $3.39. At the end of the quarter, the group had a consolidated RV backlog of $17.73 billion, an increase of over 60% as compared to the backlog as of January 31, 2021.
Looking ahead, management was confident that the industry and the business are well placed for growth.
“We remain very optimistic about the growth of the RV industry for 2022 and in the long term,” said COO Todd Woelfer.
“The outlook for THOR and the RV industry continues to be very positive, and we believe our outstanding performance will continue for the balance of our fiscal year,” added President and CEO Bob Martin.
In light of these strong results here, and the confidence from management, we see the insider buying as a bullish indicator.