Shares of pool products retailer Leslie's (LESL, Financial) jumped 18.64% in the morning session following recent SEC filings revealing significant insider purchases.
Interim CEO John Strain and CFO Scott Bowman bought a combined 220,000 shares of Leslie's (LESL, Financial) at prices ranging from $2.53 to $2.58 per share, fueling investor optimism and boosting the stock price to $2.97.
Leslie's Inc operates as a direct-to-consumer pool and spa care brand, offering a comprehensive assortment of chemicals, equipment, parts, and maintenance products in the United States. Leslie's has a market capitalization of $548.45 million, indicating its position as a small-cap stock in the specialty retail industry.
Financially, Leslie's (LESL, Financial) shows mixed signals. The stock is currently trading near its 52-week low of $2.42, presenting an attractive entry point for potential investors. This valuation is further supported by its GF Value of $10.54, suggesting the stock may be undervalued. However, investors should consider the company's financial health. The severe warning signs such as an Altman Z-score in the distress zone and a declining operating margin over the past five years indicate a potential risk of bankruptcy.
One of the brighter spots is Leslie's Piotroski F-Score of 3, which signals poor business operation, yet the Beneish M-Score of -2.98 suggests that the company is unlikely to be manipulating its financial results. The Price-to-Sales Ratio is close to a 5-year low, signaling a potentially undervalued stock within its industry.
Despite these risks, the company's stock has shown signs of investor confidence, reflected in its recent surge. The GF Score of 62 indicates an average investment opportunity. Although Leslie's insiders are buying up shares, indicating their belief in the company's potential recovery, caution is warranted due to the financial instability reflected in its fundamentals.
For more information on Leslie's GF Value, visit the GF Value page.
