Stock Analysis

Camping World Holdings, Inc. (NYSE:CWH) drops to US$2.3b and insiders who purchased earlier this year lose another US$61k

  •  Updated
NYSE:CWH
Source: Shutterstock

The recent 3.9% drop in Camping World Holdings, Inc.'s (NYSE:CWH) stock could come as a blow to insiders who purchased US$201k worth of stock at an average buy price of US$39.91 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$140k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Camping World Holdings

Camping World Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Marcus Lemonis for US$101k worth of shares, at about US$43.18 per share. That means that even when the share price was higher than US$27.81 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Marcus Lemonis was the only individual insider to buy shares in the last twelve months.

Marcus Lemonis purchased 5.03k shares over the year. The average price per share was US$39.91. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:CWH Insider Trading Volume April 4th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Camping World Holdings insiders own 2.7% of the company, worth about US$64m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Camping World Holdings Tell Us?

It doesn't really mean much that no insider has traded Camping World Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Camping World Holdings insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Camping World Holdings (of which 1 doesn't sit too well with us!) you should know about.

But note: Camping World Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether Camping World Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About NYSE:CWH

Camping World Holdings

Camping World Holdings, Inc., through its subsidiaries, retails recreational vehicles (RVs), and related products and services.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation5
Future Growth1
Past Performance2
Financial Health3
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Undervalued with mediocre balance sheet.