Board Member At Acushnet Holdings Sells $62.50M Of Stock

Aaron Yeon Ho Lee, Board Member at Acushnet Holdings GOLF, disclosed an insider sell on April 10, according to a recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Lee sold 935,907 shares of Acushnet Holdings. The total transaction amounted to $62,500,150.

At Friday morning, Acushnet Holdings shares are down by 0.0%, trading at $60.86.

Delving into Acushnet Holdings’s Background

Acushnet Holdings Corp is engaged in the design, development, manufacture, and distribution of golf products. Its product category includes golf balls, golf shoes, golf clubs, wedges, putters, golf gloves, golf gear and golf wear, and others. These products are offered through different brands such as Titleist, FootJoy, Scotty Cemeron, Vokey Design, Pinnacle, KJUS, and others. The company’s reportable segments are Titleist golf equipment, FootJoy golf wear, and Gofl gear. A majority of its revenue is generated by the Titleist golf equipment segment. Geographically, the company generates maximum revenue from the United States, followed by Europe, Middle East and Asia (EMEA), Japan, Korea, and the Rest of the world.

Acushnet Holdings: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Acushnet Holdings showcased positive performance, achieving a revenue growth rate of 7.8% as of 31 December, 2024. This reflects a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 22.61%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Acushnet Holdings’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of -0.02.

Debt Management: With a high debt-to-equity ratio of 1.0, Acushnet Holdings faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 18.06, Acushnet Holdings’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.58, Acushnet Holdings’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 12.1, the company’s market valuation exceeds industry averages.

Market Capitalization Analysis: With a profound presence, the company’s market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Exploring the Significance of Insider Trading

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Acushnet Holdings’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.