Fila Korea Co. Ltd., a Director and more-than-10% owner of Acushnet Holdings Corp. (NYSE:GOLF), sold shares worth $37.50 million on July 10. In 2016, Fila Korea became a majority owner (roughly 53%) of Acushnet Holdings by purchasing shares from Mirae Asset Management.
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
Acushnet Holdings engages in the design and manufacture of golf products and equipment. Acushnet also pays a regular quarterly dividend of $0.21 per share, representing an above-sector average yield of 1.35%.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on July 11, Fila Korea Co. Ltd. sold 587,520 shares of Acushnet for a price of $63.82 per share. As per the filing, the stock sale took place under the Stock Repurchase Agreement dated March 14, 2024, between Acushnet and Fila Korea. These shares are held indirectly by FILA Holdings and Magnus Holdings Co. Ltd., two fully owned subsidiaries of Fila Korea Co. Ltd.
It is worth noting that even after the latest Informative Sell transaction, Fila Korea Co. Ltd. still owns 32.52 million Acushnet Holdings’ shares, worth roughly $2.04 billion.
Acushnet Holdings stock currently has a Negative Insider Confidence Signal on TipRanks based on Informative Sell transactions worth $38.20 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is GOLF Stock a Good Buy?
On TipRanks, GOLF stock has a Moderate Buy consensus rating based on four Buys and three Hold ratings. The average Acushnet Holdings price target of $71.67 implies 14.3% upside potential from current levels. Meanwhile, GOLF shares have gained 14% in the past year.
