In a recent transaction, Zenon S. Nie, a director at Crown Crafts Inc (NASDAQ:CRWS), acquired additional shares of the company. The transaction involved the purchase of 8,085 shares of common stock at a price of $4.60 per share, totaling $37,191.
This purchase was carried out in a series of 27 discrete transactions on August 19, 2024. Following these transactions, Nie's direct ownership in the company has increased to 63,306 shares. Additionally, it is noted that Nie's spouse indirectly holds 189,214 shares of common stock.
Investors often monitor insider buying as it can be a signal of an executive's confidence in the company's future prospects. With this recent purchase, Nie has demonstrated a commitment to Crown Crafts, potentially reassuring shareholders of the executive's belief in the company's value.
The details of the transactions have been made available in a Form 4 filing with the Securities and Exchange Commission. Nie has agreed to provide full information regarding the number of shares purchased in each individual transaction upon request by the issuer, any security holder of the issuer, or the SEC staff.
In other recent news, Crown Crafts reported a breakeven quarter amid inflation pressures, with a net loss of $322,000, a significant shift from the previous year's net income of $366,000. Despite the current economic environment's constraints, the company remains hopeful, particularly regarding its bedding business and the recent acquisition of Baby Boom Consumer Products, which is expected to enhance future earnings. The company's cash reserves stand at $1.1 million, with long-term debt positioned at $1.5 million.
Notably, Crown Crafts is in the process of closing its UK subsidiary and focusing on new product development. However, the loss of a Target (NYSE:TGT) program has impacted the company's bibs category sales. On a positive note, the bedding business shows signs of improvement, and the Manhattan Toy segment has received positive feedback. The company has also confirmed that it will file financial statements for the newly acquired Baby Boom and estimates the net tangible assets at $6.5 million. Crown Crafts will report its second-quarter results in November, providing further insights into the company's performance and progress.
InvestingPro Insights
Following the insider purchase by Zenon S. Nie at Crown Crafts Inc (NASDAQ:CRWS), investors may find additional context in the company's financial metrics and shareholder value propositions. Crown Crafts boasts a strong shareholder yield, as reflected in its significant dividend payments to shareholders. Notably, the company has a history of maintaining these dividend payments for 15 consecutive years, highlighting a consistent return to investors.
Financially, Crown Crafts presents an appealing picture with a modest market capitalization of $47.74 million and a Price to Earnings (P/E) ratio of 11.29. The adjusted P/E ratio for the last twelve months as of Q1 2025 stands at 11.45. These figures suggest a company that is reasonably valued in relation to its earnings. Additionally, the company's Price to Book (P/B) ratio during the same period is 0.94, indicating that the stock is trading slightly below the company's book value.
The company has also demonstrated solid profitability with a gross profit of $22.22 million in the last twelve months as of Q1 2025, leading to a gross profit margin of 25.63%. This profitability is further underscored by Crown Crafts' ability to cover its short-term obligations, as its liquid assets exceed these liabilities.
For investors looking for more in-depth analysis and additional InvestingPro Tips, Crown Crafts has 4 more tips available at InvestingPro, including insights on the company's fair value and potential investment risks and opportunities.
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