Deckers Outdoor Corp (NYSE:DECK) director Maha Saleh Ibrahim recently sold shares in the company, with the transactions totaling over $43,000. These sales were executed on September 6, 2024, and were reported in a filing with the Securities and Exchange Commission.
The director sold 50 shares of common stock at an average price of $865.06 per share. The transactions were carried out in multiple trades within a price range of $861.675 to $876.09. Following these transactions, Ibrahim still holds a total of 1,689 shares of Deckers Outdoor Corp.
It's worth noting that the sales were made in accordance with a pre-arranged trading plan under Rule 10b5-1. This allows company insiders to establish predetermined trading plans for selling stocks at a time when they are not in possession of material non-public information.
Investors often monitor insider sales as they may provide insights into an insider's view of the company's current valuation. However, it's also common for executives to sell shares for personal financial management reasons, unrelated to their perspective on the company's future performance.
Deckers Outdoor Corp has not provided any additional comments on the transactions. Interested parties, including Deckers Outdoor Corporation shareholders or the staff of the SEC, can request detailed information from the reporting person regarding the number of shares sold at each separate price within the stated ranges.
In other recent news, Deckers Outdoor Corporation has seen a significant increase in revenue, largely attributed to the strong performance of its HOKA and UGG brands. The company's Q1 FY2025 revenues rose by 22% to $825 million, with HOKA reporting a 30% revenue surge to $545 million and UGG seeing a 14% rise to $223 million. This performance has led to an upward revision of Deckers' annual profit forecast, reflecting confidence in the continued demand for its full-priced offerings.
Several analyst firms, including Baird, Truist Securities, and TD Cowen, have raised their price targets for Deckers. Baird maintains an Outperform rating on Deckers, citing its industry-leading growth and high margins as justifications for the brand's premium valuation. Meanwhile, TD Cowen projects a mid-teens earnings per share compound annual growth rate extending into FY2029, driven by Deckers' sustained innovation and direct-to-consumer growth.
Deckers' new CEO, Stefano Caroti, is set to take over leadership, with high expectations reflected by the stock's 30X price-to-earnings multiple on the upper range of the forecast for FY2025 earnings per share. Retailers such as Dicks Sporting Goods and Nordstrom (NYSE:JWN) are adjusting their inventory strategies to accommodate more HOKA and UGG products. These are the latest developments in Deckers' business strategy and performance.
InvestingPro Insights
Deckers Outdoor Corp (NYSE:DECK) has displayed a robust financial position, as indicated by recent data from InvestingPro. The company holds a market capitalization of $22.7 billion, which underscores its substantial presence in the market. Notably, Deckers Outdoor Corp's revenue growth over the last twelve months, as of Q1 2023, has been impressive at 20.3%, with a quarterly revenue growth for Q1 2023 at an even higher 22.13%. These figures highlight the company's ability to increase its sales and potentially expand its market share.
Moreover, Deckers Outdoor Corp's P/E ratio stands at 28.19, which is adjusted to 27.74 for the last twelve months as of Q1 2023. This P/E ratio, when juxtaposed with the company's near-term earnings growth, suggests that the stock is trading at a low price relative to its earnings growth—a point of interest for value investors. An InvestingPro Tip also points out that analysts have recently revised their earnings upwards for the upcoming period, indicating optimism in the company's future performance. This could be a signal for potential investors to consider DECK's growth prospects.
Despite a recent hit to the stock price over the last week with a -10.35% return, Deckers Outdoor Corp's one-year price total return as of the end of the previous year was a high 63.11%. This indicates that while the stock may have faced short-term volatility, it has provided a strong return over the past year. Additionally, Deckers Outdoor Corp maintains a healthy financial structure, with cash flows that can sufficiently cover interest payments and liquid assets that exceed short-term obligations—further reinforcing the company's financial stability.
For those considering an investment in Deckers Outdoor Corp, there are 15 additional InvestingPro Tips available, which can provide a deeper analysis and more nuanced insights into the company's financial health and stock performance. These tips can be accessed at https://www.investing.com/pro/DECK.
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