Yeti Could Get Chilled By Lockup Expiration

April 23, 2019, concludes the 180-day lockup period of Yeti Holdings, Inc. (YETI).

When the lockup period expires for Yeti Holdings, the company's pre-IPO shareholders and insiders will be able to sell more than 60 million currently-restricted shares. With just 16 million shares trading pursuant to the IPO, there is a potential for the secondary market to be flooded by significant sales of currently-restricted securities when the lockup expires.

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(Source: S-1/A)

We expect that these pre-IPO shareholders and company insiders may be particularly interested in cashing in on some of their gains - YETI has a return from IPO of more than 75%. This group of pre-IPO shareholders and company insiders includes numerous directors and officers and twelve 5% shareholders.

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(Source: S-1/A)

Business Overview: Maker Of Outdoor Recreation Products

Yeti Holdings began as a maker of high-end coolers. The company now has an expanded product portfolio that includes branded hard and soft coolers, drinkware products, and outdoor living accessories. Yeti designs, makes and markets these products in the United States, Australia, Canada, and Japan under the Rambler and Yeti brands. Their products also include items such as dog bowls, shirts, and hats, sporting goods, hardware, and outdoor specialty items.

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(Source: S-1/A)

Yeti markets its products through a robust multi-channel strategy, which includes retailers, direct-to-consumer channels including YETI.com, Amazon Marketplace, and its flagship store based in Austin, Texas.

In its SEC filing, Yeti reported that net sales had leaped dramatically over the last several years, from $89.9 million in 2013 to an impressive $639.2 million in 2017. This is a compound annual growth rate of 63 percent. For the same four years, operating income grew at a CAGR of 43 percent, net income grew at a CAGR of 21 percent, adjusted operating income grew at a CAGR of 47 percent, adjusted net income grew at a CAGR of 30 percent, and adjusted EBITDA grew at a CAGR of 45 percent.

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Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this ...

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Comments

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Dick Kaplan 5 months ago Member's comment

It will take many days to unload all the shares that they have based on the average daily volume.

Kurt Benson 5 months ago Member's comment

And you can't get shares to short ahead of time, but after the 23rd they will be available. May is going to be bloody

Trisha Sanders 6 months ago Member's comment

Is it wrong that I like this company solely for their ticker symbol? :)

Go $YETI

Sensible Cents 6 months ago Member's comment

For sure, creamed.