On September 9, 2024, Paul Stone, President and Chief Executive Officer of Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH), purchased 39,920 shares of the company, according to a recent SEC Filing. Following this transaction, the insider now owns a total of 904,157 shares of the company.

• Warning! GuruFocus has detected 9 Warning Signs with SPWH.

Sportsman's Warehouse Holdings Inc operates as a retailer of outdoor sporting goods in the United States, offering a broad range of products from hunting, fishing, and camping equipment to sports apparel and footwear.

Over the past year, the insider transaction history at Sportsman's Warehouse Holdings Inc shows a pattern of more insider buying than selling. There have been 10 insider buys and 3 insider sells. The recent purchase by Paul Stone aligns with this trend of insider confidence in the company's stock.

On the day of the transaction, shares of Sportsman's Warehouse Holdings Inc were priced at $2.54. The company's market cap stood at $90.077 million. According to GF Value, the stock is currently undervalued, with a price-to-GF-Value ratio of 0.32, suggesting that the stock might be a possible value trap and warrants caution.

The GF Value is calculated based on historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, adjusted for the company's past performance and expected future business outcomes.

This insider buy could signal a positive outlook from the CEO regarding the future performance of Sportsman's Warehouse Holdings Inc, despite the current market valuation metrics suggesting caution.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.