Dj Chmn Singleton Jr Buys 43179 Of Onewater Marine Inc >Onew

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted investor optimism for a potential interest rate cut. New York Federal Reserve President John Williams, a voting member of the rate-setting committee, suggested he sees room for "further policy easing," which sent a strong signal to the markets. Following his remarks, the probability of a December rate cut, as measured by the CME FedWatch Tool, surged from 39% to 71%. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates to increased consumer spending. This prospect is outweighing recent reports of lower consumer confidence, as investors bet that a more accommodative Fed policy will support retailers through the holiday season.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Home Improvement Retailer company Floor And Decor jumped 6.8%. Is now the time to buy Floor And Decor? Access our full analysis report here, it’s free for active Edge members.
• Footwear Retailer company Shoe Carnival jumped 6.6%. Is now the time to buy Shoe Carnival? Access our full analysis report here, it’s free for active Edge members.
• Boat & Marine Retailer company OneWater jumped 7.1%. Is now the time to buy OneWater? Access our full analysis report here, it’s free for active Edge members.

Zooming In On OneWater (ONEW)

OneWater’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 3.9% on the news that markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. 

While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%.This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.

OneWater is down 34.3% since the beginning of the year, and at $11.28 per share, it is trading 50.1% below its 52-week high of $22.60 from November 2024. Investors who bought $1,000 worth of OneWater’s shares 5 years ago would now be looking at an investment worth $427.27.

What Happened?

Shares of boat and marine products retailer OneWater Marine fell 3.9% in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. 

While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%.This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. 

Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.

The shares closed the day at $10.64, down 4.3% from previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy OneWater? Access our full analysis report here.

What Is The Market Telling Us

OneWater’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock dropped 2.1% on the news that the stock's negative momentum continued as the company reported mixed fiscal fourth-quarter results, as revenue surpassed expectations but profitability fell significantly short. 

While revenue grew to $460 million, beating forecasts, the company posted earnings per share of just $0.01, missing the anticipated $0.21. The disappointing profit was mainly due to a large $146 million non-cash impairment charge related to goodwill and intangible assets. This charge resulted in a reported net loss of approximately $113 million for the quarter, a stark contrast to the previous year. Furthermore, the company's earnings outlook for the upcoming fiscal year also came in below consensus expectations. In reaction to the report, KeyBanc lowered its price target on the stock, and analysts noted that softness in the retail market pressured the company's profit margins.

OneWater is down 38% since the beginning of the year, and at $10.65 per share, it is trading 52.9% below its 52-week high of $22.60 from November 2024. Investors who bought $1,000 worth of OneWater’s shares 5 years ago would now be looking at an investment worth $434.31.

OneWater’s third quarter results were met with a negative market reaction, as revenue growth outpaced Wall Street expectations but profitability metrics fell short. Management attributed the higher sales to a rebound in both new and pre-owned boat demand, especially in markets recovering from weather disruptions last year. Pre-owned activity was particularly strong, supported by improved trade-in dynamics and disciplined inventory management. The company also noted that the exit from certain brands created short-term margin headwinds, but said it provided a cleaner operational focus for the business. CEO Anthony Aisquith emphasized, “Our focus on serving customers drove another year of positive same-store sales growth and continued market share gains.”

Is now the time to buy ONEW? Find out in our full research report (it’s free for active Edge members).

OneWater (ONEW) Q3 CY2025 Highlights:

• Revenue: $460.1 million vs analyst estimates of $409 million (21.8% year-on-year growth, 12.5% beat)
• Adjusted EPS: $0 vs analyst estimates of $0.21 (significant miss)
• Adjusted EBITDA: $17.5 million vs analyst estimates of $19.93 million (3.8% margin, 12.2% miss)
• Adjusted EPS guidance for the upcoming financial year 2026 is $0.50 at the midpoint, missing analyst estimates by 59.1%
• EBITDA guidance for the upcoming financial year 2026 is $75 million at the midpoint, below analyst estimates of $86.44 million
• Operating Margin: -28.3%, down from 1.2% in the same quarter last year
• Locations: 95 at quarter end, down from 98.3 in the same quarter last year
• Same-Store Sales rose 23% year on year (-17% in the same quarter last year)
• Market Capitalization: $182.1 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From OneWater’s Q3 Earnings Call

• Craig Kennison (Baird) asked about year-over-year inventory reductions and expectations for 2026. CFO Jack Ezzell explained inventory was down $50 million and would likely rise modestly due to price increases and timing of new model year boats.
• Joe Altobello (Raymond James) inquired about the impact of declining interest rates on consumer demand. Executive Chairman Austin Singleton said lower rates are beginning to help with customer confidence, though the effect has been gradual so far.
• Joe Altobello (Raymond James) also asked about sales performance at the Fort Lauderdale Boat Show. Singleton noted sales were up nearly 20%, with margin pressures beginning to ease, though promotional activity is expected to continue.
• Noah Zatzkin (KeyBanc Capital Markets) questioned the sustainability of strong pre-owned sales and trade-in activity. Singleton said improved manufacturer lead times have supported dealer-facilitated trades, with trends expected to continue into next year.
• Noah Zatzkin (KeyBanc Capital Markets) sought an update on M&A strategy. Singleton emphasized OneWater is being disciplined, prioritizing debt reduction over acquisitions in the near term, with no rush to pursue deals.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be watching (1) whether OneWater can sustain strong pre-owned sales as trade-in activity normalizes, (2) improvements in new boat gross margins as inventory discipline takes hold, and (3) the company’s ability to offset headwinds from discontinued brands through operational efficiency and cost control. Monitoring the impact of industry-wide inventory normalization and potential interest rate changes will also be important.

OneWater currently trades at $11.17, down from $15.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return).