SALT LAKE CITY - Clarus (NASDAQ:CLAR) Corporation (NASDAQ: CLAR), a global company specializing in outdoor equipment, has authorized two major shareholders to expand their ownership stakes. Greenhouse Funds LLLP and the company's Executive Chairman Warren Kanders can now increase their shares to 15.0% and 26.7%, respectively.
The company's board of directors approved the requests, which are subject to conditions including that the increases occur within the next twelve months and do not exceed the approved percentages. As of the latest filings, Greenhouse holds approximately 11.9% and Kanders 16.7% of Clarus' outstanding common stock.
This decision by the board allows these shareholders to potentially increase their influence in the company. However, should their ownership fall below 9.9%, they would require new board approval to again surpass that threshold.
Clarus, headquartered in Salt Lake City, Utah, is known for designing, developing, manufacturing, and distributing outdoor equipment and lifestyle products. The company sells its products globally under various brand names, including Black Diamond ®, Rhino-Rack®, MAXTRAX®, and TRED Outdoors®, through multiple channels.
This update is based on a press release statement from Clarus Corporation.
InvestingPro Insights
As Clarus Corporation (NASDAQ: CLAR) opens the door for major shareholders to expand their stakes, it's valuable to consider the company's financial health and market performance to understand the potential impact of these changes. The recent authorization by the company's board has positioned Greenhouse Funds LLLP and Executive Chairman Warren Kanders to potentially strengthen their influence within the company. Here's a look at some key metrics and insights from InvestingPro that could shed light on Clarus' current situation:
InvestingPro Data shows that Clarus has a market capitalization of $201.05 million, with a negative P/E ratio of -12.51, which reflects the company's challenges in generating profit relative to its share price. However, the adjusted P/E ratio for the last twelve months as of Q3 2023 stands at a much higher 173.35, indicating expectations of future earnings growth. Additionally, the company's revenue for the same period is recorded at $385.37 million, despite experiencing a decline of 16.61%.
InvestingPro Tips suggest that while the stock has suffered a significant downturn over the last week, with a price total return of -10.98%, and has performed poorly over the last month and year, there are positive signs as well. Analysts predict that the company will be profitable this year, and the net income is expected to grow. Furthermore, Clarus is recognized for its high shareholder yield and strong free cash flow yield, as implied by its valuation.
For those considering a deeper analysis of Clarus Corporation, InvestingPro offers additional insights and metrics. To explore these further, visit InvestingPro and take advantage of the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 more InvestingPro Tips available, investors can gain a comprehensive understanding of the company's financial standing and market potential.
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