Sportsman's Warehouse (SPWH) Shares Soar 11.65% on Insider Buying, Earnings Beat

Sportsman's Warehouse (SPWH) shares surged 11.65% intraday, reaching their highest level since June 2024, marking a 9-day winning streak with a cumulative gain of 117.46% over the past nine days.

The strategy of buying SPWH shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -12.5%, significantly underperforming the market. This indicates that relying on recent highs as a buying trigger and holding for a short duration is not a profitable strategy for SPWH.

One of the key factors driving the recent surge in SPWH's stock price is the significant insider activity. On June 11, 2025, Sportsman's Warehouse President & CEO Paul Stone purchased 24,002 shares of SPWH stock, valued at $74,886. This move is seen as a strong indicator of confidence in the company's future prospects, as insiders typically buy shares when they believe the stock is undervalued or the company is poised for growth.

Following its Q1 earnings report, Sportsman's Warehouse has seen several positive developments. Analysts have raised their price targets for the company, citing an earlier-than-expected turnaround. B. Riley, for instance, increased its price target due to a 2% increase in same-store sales, breaking a streak of 14 quarters of decline. Roth Capital also boosted its price target, highlighting a strong Q1 earnings beat, positive comps for the first time in four years, and improved operating margins. The company's transformation strategy, which focuses on inventory precision and a digital-first marketing approach, has contributed to these positive results.

Despite these positive developments, Sportsman's Warehouse is not without its challenges. The company reported a net loss of $21.3 million for the quarter, and there is pressure on gross margins due to strategic inventory adjustments. These financial challenges are part of the broader context in which the company is operating, and investors will be watching closely to see how management navigates these issues in the coming quarters.