Caleres Inc. (NYSE:CAL), a leading footwear company, has reported a significant stock transaction by one of its top executives. Diane M. Sullivan, the company's Executive Chair, sold a total of 31,865 shares of common stock in a series of transactions on May 20th and May 21st, 2024.
The sales generated a total of approximately $1,232,556 for Sullivan, with the price per share ranging from $36.4045 to $36.5455. These transactions were carried out in accordance with a Rule 10b5-1 trading plan that Sullivan had previously adopted on January 19, 2024. This plan allows corporate insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, thereby helping to avoid any potential accusations of insider trading.
On the first day of the transactions, Sullivan sold 10,895 shares at an average price of $36.5392 and another 10,876 shares at an average of $36.5455. The following day, she continued with sales of 10,598 shares at an average price of $36.4382 and concluded with 1,396 shares at an average price of $36.4045.
The footnotes attached to the filing indicate that the prices reported are weighted averages and that the shares were sold at various prices within the stated ranges. Sullivan has committed to providing full information about the number of shares sold at each separate price upon request by Caleres Inc., its security holders, or the SEC staff.
After the sales, Sullivan's direct holdings in the company have been adjusted to a total of 220,903 shares of common stock. Additionally, the report disclosed indirect holdings of 11,0236 shares held by a trust and 10,512 shares through a 401(k) plan.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. Caleres Inc., formerly known as Brown Shoe Company, is headquartered in St. Louis, Missouri, and has been in the footwear industry for over a century.
InvestingPro Insights
As Caleres Inc. (NYSE:CAL) navigates the market, investors are taking note of the company's performance and valuation metrics. With a market capitalization of $1.27 billion, Caleres demonstrates a significant presence in the footwear industry. According to InvestingPro data, the company's P/E ratio stands at a low 7.47, indicating that the stock may be undervalued relative to its earnings. This aligns with one of the InvestingPro Tips highlighting that Caleres is trading at a low earnings multiple.
InvestingPro Tips also reveal that Caleres has maintained dividend payments for 54 consecutive years, showcasing its commitment to returning value to shareholders. This is further substantiated by the company's high shareholder yield. Additionally, the stock has experienced a large price uptick over the last six months, with a 26.15% total return, reflecting investor optimism and potentially signaling a positive trajectory for the stock's future performance.
While the company's revenue growth has slightly declined by 5.08% over the last twelve months as of Q4 2024, Caleres has managed to maintain a robust gross profit margin of 44.83%. This indicates that despite revenue fluctuations, the company is efficient in managing its cost of goods sold and maintaining profitability. Investors looking for more insights can find a wealth of additional tips on InvestingPro, with a total of 9 tips available for Caleres Inc. To take advantage of these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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