Latham Group (NASDAQ:SWIM) Shares Down 10.1% – Should You Sell?

Shares of Latham Group, Inc. (NASDAQ:SWIM) fell 10.1% during trading on Thursday . The stock traded as low as $6.42 and last traded at $6.47. 1,113,266 shares were traded during mid-day trading, an increase of 7% from the average session volume of 1,041,352 shares. The stock had previously closed at $7.20.

Latham Group News Summary

Here are the key news stories impacting Latham Group this week:

• Positive Sentiment: Q4 results beat consensus: revenue of ~$99.95M vs. ~$95.9M est. and adjusted EPS better than expected (reported -$0.06 vs. -$0.09 est.), with improving margins and year‑over‑year progress. MarketBeat Q4 Results
• Positive Sentiment: Company raised FY2026 revenue guidance to $580M–$610M (above consensus) and highlighted growth initiatives including the Sand States expansion and the Freedom Pools acquisition — a constructive outlook for top‑line and market share gains. Guidance & Growth Initiatives
• Positive Sentiment: Analyst reactions were generally supportive: Stifel raised its PT to $9.50 (buy) and Barclays lifted its PT to $8.00 (equal‑weight), signaling institutional recognition of the company’s better results and outlook. Analyst Price Target Moves
• Neutral Sentiment: Management commentary and slides are available (earnings call transcript and presentation) for investors digging into drivers behind the beat and guidance. Earnings Call Transcript Slide Deck
• Neutral Sentiment: Recent media coverage highlighted a prior sharp stock rally following the results (large intraday move), increasing short‑term volatility and potential for profit‑taking. News Coverage of Stock Move
• Negative Sentiment: Valuation and cash‑flow concerns: analysts and commentary warn that while EBITDA/EPS projections look strong, free‑cash‑flow remains weaker and sector multiples are elevated — creating valuation risk that can cap near‑term upside. Valuation Risk Analysis

Analyst Upgrades and Downgrades

A number of research firms have recently commented on SWIM. William Blair reaffirmed an “outperform” rating on shares of Latham Group in a research note on Wednesday. Stifel Nicolaus upped their price target on shares of Latham Group from $8.75 to $9.50 and gave the company a “buy” rating in a research report on Wednesday. Barclays boosted their price objective on Latham Group from $7.00 to $8.00 and gave the company an “equal weight” rating in a research note on Wednesday. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Latham Group in a report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Latham Group currently has a consensus rating of “Hold” and an average price target of $7.33.

Latham Group Price Performance

The business has a 50-day moving average of $6.56 and a 200 day moving average of $7.06. The company has a current ratio of 2.43, a quick ratio of 1.72 and a debt-to-equity ratio of 0.68. The firm has a market capitalization of $753.62 million, a P/E ratio of 71.78 and a beta of 1.70.

Latham Group (NASDAQ:SWIM) last announced its quarterly earnings data on Tuesday, March 3rd. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.03. The firm had revenue of $99.95 million during the quarter, compared to analysts’ expectations of $95.86 million. Latham Group had a return on equity of 2.81% and a net margin of 2.04%. On average, sell-side analysts predict that Latham Group, Inc. will post -0.04 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. nVerses Capital LLC bought a new stake in shares of Latham Group during the fourth quarter worth about $97,000. Wellington Management Group LLP raised its stake in shares of Latham Group by 216.4% in the fourth quarter. Wellington Management Group LLP now owns 6,749,349 shares of the company’s stock worth $42,858,000 after purchasing an additional 4,616,367 shares during the last quarter. Tudor Investment Corp ET AL bought a new position in shares of Latham Group in the fourth quarter valued at approximately $207,000. Millennium Management LLC lifted its holdings in shares of Latham Group by 124.0% in the fourth quarter. Millennium Management LLC now owns 151,710 shares of the company’s stock valued at $963,000 after purchasing an additional 83,990 shares in the last quarter. Finally, Man Group plc purchased a new position in shares of Latham Group during the fourth quarter valued at approximately $118,000. 83.95% of the stock is owned by institutional investors.

Latham Group Company Profile

Latham Group, Inc designs, manufactures and supplies a broad range of aquatic products and services for residential and commercial applications. Offerings include fiberglass and vinyl-liner pool shells, commercial water park structures, water slides, surf simulators, pumps, filters, heaters and sanitation systems. The company also provides parts, equipment and technical support for pool installation, maintenance and repair.

Operating across three core segments—commercial, residential and aftermarket—Latham delivers turnkey aquatic facilities and attractions for municipal, hospitality and resort clients, offers packaged pool kits and equipment packages to builders and dealers, and supplies replacement parts, service contracts and technical assistance to support ongoing pool operations.

Headquartered in the United States, Latham Group maintains manufacturing and distribution centers throughout North America and Europe.