Insider Trading Report: Camping World Holdings (CWH)

Marcus Lemonis, CEO and major holder at Camping World Holdings (CWH), recently bought 2,330 more shares. The buy increased his holdings by less than 0.4 percent, and came to a total price of just over $100,000.

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  • This is the first insider buy since March. Insiders have both been buyers and sellers in the past year, with an investment partnership being one of the bigger insider sellers.

    Recreational vehicle sales have exploded in the past year, amidst grounded airlines and domestic-only travel. Shares are up nearly 193 percent, nearly four times higher than the return on the S&P 500. While the company’s profit margins are low, revenue is up 52 percent in the past year.

    Action to take: The insider buy has occurred as shares have pulled back to around $42 from $48. This looks like a reasonable entry price for the next move higher.  Over the past few months, shares have advanced overall, but have had healthy double-digit drops along the way.

    Investors may like shares here, although they only pay a low 0.8 percent dividend yield. To play the next move higher, the September $50 calls stand a good chance of moving in-the-money.

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  • Last trading for about $3.20, the option can potentially provide mid-to-high double-digit returns. Investors will likely be looking for signs that the company can continue its strong growth as the pandemic ends, however, so look to take quick profits on a pop higher in shares.

     

    Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.