In another suspicious trade from United States politicians, Senator Katie Britt sold all her OneWater Marine (NASDAQ: ONEW) shares one week before a disastrous Q2 2024 earnings report.
On August 2, Finbold retrieved data from Quiver Quantitative, looking at a specific trade from Senator Katie Britt. As Britt disclosed on July 29, she liquidated her OneWater position between $1,001 and $15,000 five days before.
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According to the ONEW stock chart, the U.S. Senator sold her shares at a local bottom that came before a bounce up and further price crash, driving the stock to a three-month low at $21.88 per share. Britt’s trade occurred at around $26.83, a week before the crash caused by poor Q2 2024 earning reports.
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As of this writing, OneWater’s stock price has lost 18.45% since the disclosed “full sale.” The perfect timing gathered the market’s attention.
OneWater (ONEW) Q2 2024 earnings
OneWater Marine, a leading boat and marine products retailer, delivered disheartening Q2 2024 earnings.
Firstly, the company reported revenues of $542.4 million, an 8.7% decline from the previous year. Analysts had expected $611 million, translating to an 11.2% miss. Moreover, OneWater’s earnings per share (EPS) dropped to $1.05, sharply missing the $2.17 forecast and marking a 51.6% shortfall.
Additionally, OneWater’s gross margin also took a hit, down to 24.4% from last year’s 26.8%. The number of locations decreased slightly, from 99.5 to 98, which doesn’t sound too alarming but still shows a contraction. Consequently, the stock plummeted 14.6% to $25.89 right after the earnings release, hitting investors hard.
CEO Austin Singleton attributed the subpar performance largely to weaker market conditions and adverse weather in Texas. Besides, retailers focused on high-end, discretionary purchases like boats are particularly susceptible to economic fluctuations. This quarter’s disappointing results reflect OneWater’s vulnerabilities in both market dynamics and environmental factors.
Senator Katie Britt’s timely divestment added a layer of intrigue to the narrative. Looking ahead, however, Wall Street anticipates a 7.1% sales growth over the next year.
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