Executives at Coliseum Capital Management, LLC, a significant shareholder in MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT), have made substantial purchases of the company's stock, according to recent filings with the Securities and Exchange Commission. The transactions, which took place over several days, amounted to a total investment of $2.54 million.
The buying spree began on June 6, 2024, with the purchase of 98,446 shares at a weighted average price of $20.35, with individual transactions ranging from $20.30 to $20.40. The activity continued on June 7, with an additional 7,921 shares acquired at an average of $20.48, within a price range of $20.40 to $20.50. The most recent purchase on June 10 saw 18,084 shares bought at an average price of $20.57, with prices varying from $20.25 to $20.75 per share.
Following these purchases, the group's total ownership in MasterCraft Boat Holdings has increased to 3,073,973 shares. The shares are held directly by Coliseum Capital Partners, L.P. and a separate account investment advisory client, with Coliseum Capital, LLC acting as the general partner and Coliseum Capital Management serving as the investment adviser.
Both Christopher Shackelton and Adam Gray, managers with an ownership interest in Coliseum Capital Management and Coliseum Capital, LLC, have disclaimed beneficial ownership of these securities except to the extent of their pecuniary interest therein. After the reported transactions, Coliseum Capital Partners directly owned 2,580,382 shares of Common Stock, and the separate account directly owned 493,591 shares of Common Stock.
The filings indicate a bullish stance by Coliseum Capital Management on MasterCraft Boat Holdings, as the firm increases its position in the company. MasterCraft Boat Holdings, known for manufacturing high-performance sports boats, is a staple in the ship and boat building industry.
Investors often view such purchases by significant shareholders as a positive signal about a company's future prospects. The detailed information provided in the filings, including the price ranges and total shares acquired, offers transparency for other investors considering similar moves in MasterCraft Boat Holdings.
In other recent news, MasterCraft Boat Holdings, Inc. reported a substantial decrease in its Q3 2024 earnings, with net sales falling by 43% to $95.7 million. This downturn was primarily attributed to reduced unit sales and increased dealer incentives. The company's gross margin also experienced a decline, landing at 19.2%, while adjusted net income fell from $24.1 million in the previous year to $6.3 million. As a response to these figures and the challenging retail landscape, MasterCraft has revised its full-year guidance, now expecting net sales between $360 million and $365 million, and adjusted EBITDA between $28 million and $30 million. In a strategic move to diversify its offerings, the company has launched Balise, a luxury pontoon brand. These developments represent recent shifts in MasterCraft's approach to navigating the current market conditions.
InvestingPro Insights
In light of Coliseum Capital Management's recent acquisition of shares in MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT), a deeper look into the company's financials and market performance provides valuable context. InvestingPro data reveals that MasterCraft has a market capitalization of $351.51 million and is trading at a price-to-earnings (P/E) ratio of 9.13, which slightly adjusts to 8.54 when considering the last twelve months as of Q3 2024. This could indicate that the stock is reasonably valued compared to earnings.
Despite a challenging revenue environment, with a notable decline of 32.73% in revenue over the last twelve months as of Q3 2024, MasterCraft maintains a gross profit margin of 21.85%. This suggests that the company is still able to retain a significant portion of sales as gross profit. Additionally, the return on assets stands at a robust 11.34%, indicating efficient use of company assets to generate earnings.
From the perspective of InvestingPro Tips, two insights stand out. Firstly, management's aggressive share buybacks demonstrate confidence in the company's value, aligning with Coliseum Capital Management's recent purchases. Secondly, MasterCraft's financial stability is supported by the fact that it holds more cash than debt on its balance sheet, which is a reassuring sign for investors concerned about the company's solvency in a sales decline scenario.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available, including predictions on profitability and stock price volatility. MasterCraft's ability to cover interest payments with cash flows and its liquid assets exceeding short-term obligations are among the other insights provided. To access these additional tips and enhance your investment strategy, visit https://www.investing.com/pro/MCFT and use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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