Some Camping World Holdings, Inc. (NYSE:CWH) stockholders might be a little worried to see that its chairman and CEO, Marcus Lemonis, recently sold $10 million of its shares at a price of $27.59 per share. That sale reduced their overall holdings by 42%, which is hardly insignificant but far from the worst we’ve seen.
Our analysis indicates this CWH is potentially undervalued!
Camping World Holdings insider transactions over the past year
Notably, Marcus Lemonis’ recent sale is the largest insider sale of Camping World Holdings stock we’ve seen in the last year. So what is clear is that an insider saw fit to sell at the current price of $26.64. We don’t generally like insider sales, but the lower the sale price, the more concerned we are. We’re finding that this sale happened around the current price, so it’s not a big deal, although it’s hardly a good sign.
We’re pleased to note that insiders paid $384,000 for 12,70,000 shares last year. On the other hand, they sold 367,000 shares for $10 million. Below is a visual representation of insider transactions (both corporate and individual) over the past 12 months. If you click on the chart you will see all the individual transactions including the stock price, the individual and the date!
NYSE:CWH insider trading volume as of November 29, 2022
If you like buying stocks that insiders buy instead of selling, then you might love this free List of companies. (Hint: Insiders bought them).
Many investors like to check how much of a company is owned by insiders. We usually like to see a fairly high level of inside ownership. Insiders own 1.7% of shares in Camping World Holdings, which is valued at about $40 million. This level of insider ownership is good, but close to being particularly outstanding. It certainly suggests a reasonable level of alignment.
What could insider transactions at Camping World Holdings tell us?
An insider recently sold shares in Camping World Holdings, but they haven’t bought any. Even our longer-term analysis of insider transactions did not bring any trust. Insiders own shares, but given the selling history, we’re still fairly cautious. So we would only buy after careful consideration. In addition to knowing about ongoing insider transactions, it is beneficial to identify the risks Camping World Holdings faces. Every business has risks and we have recognized them 3 warning signs for Camping World Holdings (1 of which should not be ignored!) that you should know.
Of course Camping World Holdings might not be the best stock to buy. You might want to see this free Collection of high quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.
The assessment is complex, but we help to simplify it.
Find out if Camping World Holdings might be over or undervalued by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.
Check out the free analysis
Do you have any feedback about this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.
This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.