Latham Group (NASDAQ:SWIM) Reaches New 1-Year High Following Better-Than-Expected Earnings

Latham Group, Inc. (NASDAQ:SWIM) shares hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $8.97 and last traded at $7.86, with a volume of 1408746 shares trading hands. The stock had previously closed at $6.44.

The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.03. Latham Group had a net margin of 2.04% and a return on equity of 2.81%. The business had revenue of $99.95 million for the quarter, compared to analyst estimates of $95.86 million.

Latham Group News Roundup

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

• Positive Sentiment: Q4 beat — SWIM reported better-than-expected Q4 results (EPS beat and revenue above estimates) with margin expansion; management cited fiberglass pools, autocovers, dealer expansion and operational efficiencies as growth drivers. Latham Group: Better Results, But Valuation Risk Remains
• Positive Sentiment: Raised FY2026 revenue guidance — Company issued a net‑sales target of $580M–$610M, above consensus (~$569.8M), signaling organic growth and contribution from recent acquisition/investments. Latham outlines 2026 guidance
• Positive Sentiment: Analyst support — Firms raised price targets: Stifel to $9.50 (buy) and Barclays to $8.00 (equal‑weight), reflecting improved near‑term outlook and giving upside from current levels. Stifel PT Raise / StreetInsider Barclays PT Note / Benzinga
• Neutral Sentiment: Earnings materials available — The full Q4 earnings call transcript and presentation are posted for deeper read of margin drivers, seasonality and dealer expansion strategy. Earnings Call Transcript Earnings Presentation
• Neutral Sentiment: Volatility after earnings — Media reported an initial ~15% post‑earnings jump, illustrating strong investor reaction but also short‑term volatility. Yahoo: Latham Delivers Impressive Q4
• Negative Sentiment: Valuation and cash‑flow concerns — Analysts and commentators warn SWIM’s multiple is elevated versus cash‑flow strength; projected EBITDA/EPS growth is contrasted with weaker free cash flow, which raises valuation risk if industry demand softens. Valuation Risk Discussion

Analyst Ratings Changes

SWIM has been the subject of a number of research analyst reports. Barclays upped their price objective on Latham Group from $7.00 to $8.00 and gave the stock an “equal weight” rating in a report on Wednesday. Stifel Nicolaus upped their price target on Latham Group from $8.75 to $9.50 and gave the stock a “buy” rating in a research note on Wednesday. Weiss Ratings restated a “sell (d)” rating on shares of Latham Group in a report on Monday, December 29th. Finally, William Blair reiterated an “outperform” rating on shares of Latham Group in a report on Wednesday. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $7.33.

Institutional Trading of Latham Group

Hedge funds have recently made changes to their positions in the company. Rhumbline Advisers boosted its stake in shares of Latham Group by 2.7% in the second quarter. Rhumbline Advisers now owns 63,639 shares of the company’s stock valued at $406,000 after purchasing an additional 1,672 shares during the period. Deutsche Bank AG increased its stake in Latham Group by 5.1% during the 4th quarter. Deutsche Bank AG now owns 35,682 shares of the company’s stock worth $227,000 after buying an additional 1,721 shares during the period. Squarepoint Ops LLC lifted its holdings in Latham Group by 5.5% in the 3rd quarter. Squarepoint Ops LLC now owns 35,978 shares of the company’s stock worth $274,000 after buying an additional 1,873 shares in the last quarter. BNP Paribas Financial Markets boosted its position in Latham Group by 83.9% in the 2nd quarter. BNP Paribas Financial Markets now owns 4,211 shares of the company’s stock valued at $27,000 after buying an additional 1,921 shares during the last quarter. Finally, Arizona State Retirement System grew its stake in shares of Latham Group by 16.4% during the third quarter. Arizona State Retirement System now owns 13,765 shares of the company’s stock valued at $105,000 after acquiring an additional 1,939 shares in the last quarter. Hedge funds and other institutional investors own 83.95% of the company’s stock.

Latham Group Stock Down 10.3%

The company has a market capitalization of $753.62 million, a price-to-earnings ratio of 71.78 and a beta of 1.70. The company has a quick ratio of 1.72, a current ratio of 2.43 and a debt-to-equity ratio of 0.68. The firm has a 50 day moving average price of $6.57 and a two-hundred day moving average price of $7.05.

About Latham Group

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.