Benzinga - by Benzinga Insights, Benzinga Staff Writer.
KERRII ANDERSON, Board Member at Abercrombie & Fitch (NYSE:ANF), disclosed an insider sell on June 4, according to a recent SEC filing.
What Happened: ANDERSON's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 7,500 shares of Abercrombie & Fitch. The total transaction value is $1,295,398.
In the Wednesday's morning session, Abercrombie & Fitch's shares are currently trading at $172.33, experiencing a up of 1.58%.
Unveiling the Story Behind Abercrombie & Fitch Abercrombie & Fitch Co is a specialty retailer that sells casual clothing, personal-care products, and accessories for men, women, and children. It sells direct to consumers through its stores and websites, which include the Abercrombie & Fitch, Abercrombie kids, and Hollister brands. Most stores are in the United States, but the company does have many stores in Canada, Europe, and Asia. All stores are leased. Abercrombie ships to well over 100 countries via its websites. The company sources its merchandise from dozens of vendors that are primarily located in Asia and Central America. Abercrombie has two distribution centers in Ohio to support its North American operations. It uses third-party distributors for sales in Europe and Asia.
Key Indicators: Abercrombie & Fitch's Financial Health Negative Revenue Trend: Examining Abercrombie & Fitch's financials over 3 months reveals challenges. As of 30 April, 2024, the company experienced a decline of approximately -29.75% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Navigating Financial Profits:
- Gross Margin: The company sets a benchmark with a high gross margin of 66.37%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.24, Abercrombie & Fitch showcases strong earnings per share.
Navigating Market Valuation:
- Price to Earnings (P/E) Ratio: Abercrombie & Fitch's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 21.1.
- Price to Sales (P/S) Ratio: The current P/S ratio of 2.02 is above industry norms, reflecting an elevated valuation for Abercrombie & Fitch's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 14.36 reflects market recognition of Abercrombie & Fitch's value, positioning it as more highly valued compared to industry peers.
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Uncovering the Importance of Insider Activity Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
The Insider's Guide to Important Transaction Codes When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Abercrombie & Fitch's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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