When a top-level insider makes a purchase in their own company, investors should take note. It’s not a stretch to say that these individuals are some of the most informed participants in the market.
Here, we are going to highlight a large CEO purchase at OneWater Marine Inc (ONEW:US). OneWater Marine owns and operates marine retail dealerships throughout North America. The company targets the premium boat market, selling new and pre-owned boats. It also sells parts and accessories and offers maintenance and repair services, boat storage facilities, and finance and insurance products. It’s listed on the Nasdaq and currently has a market capitalization of approximately $440.56 million.
Insider Buying at OneWater Marine
Our insider transaction data shows that on November 17, the Founder/CEO of OneWater Marine, Austin Singleton, purchased 6,000 ONEW shares at a price of $31.45 per share. This trade cost the insider around $190,000.
This trade is worth highlighting for a couple of reasons.
Firstly, Mr. Singleton has been the CEO of OneWater Marine for eight years, having been CEO when the business was first formed. Therefore, he is likely to know the business, and the industry, extremely well.
Secondly, our insider transaction data shows that this is the first insider purchase of stock at the company for over a year and a half. It is therefore significant that Mr. Singleton has decided to recently buy company stock. Our Insider Model gives the company a score of four which indicates that insider sentiment within the business is high.
Record Revenue generation
OneWater Marine recently produced a record set of full-year results.
For the year ended September 30, revenue came in at $1.74 billion, 42% higher than the figure achieved a year before. This was the result of acquisitions and a double-digit increase in same store sales. The gross profit margin jumped 260 basis points to 31.7% while adjusted EBITDA was $248 million. This was a record for the company and 59% up on the year prior.
Going forward, OneWater Marine said that it expects same store sales to be up by low to mid-single digits this year. This is despite a predicted challenging economic environment. Its adjusted EBITDA is expected to be between $250 million and $260 million.
“Recently, we have seen a strong start to the boat show season, reinforcing the healthy demand environment. As we look to fiscal year 2023, we are confident that our strategy will propel us forward to deliver long-term value for all our stakeholders,” said Mr. Singleton.
Given these healthy results, we see the recent insider trading caseas a bullish event.
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