Wynnchurch Capital sells $22.9 million in Latham Group stock

Published 18/03/2025, 23:38
Wynnchurch Capital sells $22.9 million in Latham Group stock

Wynnchurch Capital Partners (WA:CPAP) IV, L.P., a significant shareholder of Latham Group , Inc. (NASDAQ:SWIM), sold 3,494,750 shares of the company’s common stock on March 14, according to a recent SEC filing. The shares were sold at a price of $6.54 each, amounting to a total transaction value of approximately $22.9 million. Following this sale, Wynnchurch Capital retains ownership of 11,050,953 shares in Latham Group.

In other recent news, Latham Group reported its fourth-quarter 2024 earnings, revealing a larger-than-expected loss with an EPS of -$0.25, missing the forecast of -$0.11. Despite this, the company’s revenue exceeded expectations, reaching $87.27 million against a forecast of $85.17 million. For the full year, Latham Group’s net sales declined by 10% to $509 million, but the company achieved a gross margin improvement to 30.2% from 27% in the previous year. Looking ahead, Latham Group has projected 2025 net sales between $535 million and $565 million and anticipates adjusted EBITDA growth to reach $90-$100 million. Stifel analysts maintained a Buy rating on Latham Group shares with a price target of $8.00, noting that the company’s 2025 guidance surpassed their prior estimates. The firm expressed confidence in Latham’s growth potential, especially in the fiberglass pool market. Latham Group’s strategic focus on expanding market share in the Sand States and enhancing operational efficiencies is expected to support its growth trajectory.

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