In a recent transaction on July 22, Diane M. Sullivan, the Executive Chair of Caleres Inc. (NYSE:CAL), a leading footwear company, sold 17,068 shares of company stock. The total value of the shares sold amounted to approximately $605,079, with the transaction prices ranging from $35.01 to $35.85 per share.
The sale was conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Sullivan had adopted on January 19, 2024. This plan allows company insiders to sell shares over a predetermined period of time, providing an affirmative defense against accusations of trading on non-public material information.
Following the sale, Sullivan still has a significant stake in the company, owning 150,449 shares directly. Additionally, she has indirect holdings, with 110,236 shares owned by a trust and 10,542 shares held through a 401(k) Plan.
Investors often monitor the buying and selling activities of company executives as these transactions can provide insights into their perspective on the company's future prospects. However, it's important to note that these transactions do not necessarily indicate a change in company fundamentals and can be motivated by various personal financial considerations.
As for Caleres Inc., the company continues to be a prominent player in the footwear industry, with a diverse portfolio of brands catering to a wide range of consumers. The company's stock performance and financial results are publicly available for investors who wish to gain a comprehensive understanding of its business and market position.
In other recent news, footwear company Caleres Inc. reported solid financial results for the first quarter of 2024, surpassing earnings per share (EPS) expectations with a figure of $0.88 and reaching a record-high gross margin of 47%. Despite a slight underperformance in sales, the company reiterated its full-year earnings guidance. The Brand Portfolio segment, including brands like Sam Edelman and Allen Edmonds, sustained a robust operating margin, even with a dip in sales. Additionally, Caleres' e-commerce platforms experienced growth, backed by investments in marketing, international expansion, and system upgrades.
In board-related developments, Carla C. Hendra, a member of Caleres' Board of Directors, announced her resignation, which will take effect after the next scheduled Board meeting. The company clarified that her departure is not due to any disagreements on matters of operations, policies, or practices. As of now, the company has not announced a successor or provided details on the process for filling the soon-to-be-vacant seat on the Board.
Looking ahead, Caleres anticipates full-year sales to be flat to up 2% and projects earnings per diluted share to be between $4.30 and $4.60 for the full year. These recent developments underscore a positive outlook for Caleres, despite some challenges in sales performance.
InvestingPro Insights
Caleres Inc. (NYSE:CAL) has recently been the subject of analysis by several market experts, and the insights from InvestingPro provide a nuanced view of the company's financial health and stock performance. The latest data indicates that Caleres has a market capitalization of $1.28 billion, with a notably low price-to-earnings (P/E) ratio of 7.76. This low earnings multiple suggests that the stock may be undervalued compared to its earnings, which could attract investors looking for potentially overlooked opportunities in the market.
An important aspect to consider is the company's P/E ratio in relation to its near-term earnings growth, which stands at a high PEG ratio of 2.51. This figure points to a high price tag on the company's growth relative to earnings, which could raise questions about future valuation if the anticipated earnings growth does not materialize. Additionally, the company has shown a slight decline in revenue growth over the last twelve months as of Q1 2025, with a decrease of -2.83%. Despite this, Caleres has maintained a strong gross profit margin of 45.11%, indicating effective cost management and a solid competitive position within the industry.
For investors seeking stability, an InvestingPro Tip highlights that Caleres has consistently paid dividends for 54 consecutive years, showcasing its commitment to shareholder returns. Moreover, the company is expected to remain profitable this year, with analysts predicting positive earnings. For those interested in the company's stock volatility, another InvestingPro Tip notes that the stock price movements have been quite volatile, which could be a consideration for risk-averse investors.
For a deeper dive into Caleres Inc.'s financials and stock performance, readers can explore additional InvestingPro Tips that provide further analysis and forecasts. There are currently 7 more tips available on InvestingPro. To gain access to these valuable insights, use the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, helping investors make more informed decisions.
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