Benzinga - by Benzinga Insights, Benzinga Staff Writer.
SHANNON SISLER, EVP at Crocs (NASDAQ:CROX), executed a substantial insider sell on May 29, according to an SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, SISLER sold 2,854 shares of Crocs. The total transaction value is $431,402.
Tracking the Wednesday's morning session, Crocs shares are trading at $152.5, showing a down of 1.55%.
Discovering Crocs: A Closer Look Crocs Inc is engaged in the design, development, marketing, distribution, and sale of casual lifestyle footwear accessories for men, women, and children. The reportable geographic segments of the company include the Americas, Asia Pacific, and EMEA.
Unraveling the Financial Story of Crocs Revenue Growth: Crocs displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 6.16%. This indicates a notable increase in the company's 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.
Evaluating Earnings Performance:
- Gross Margin: Achieving a high gross margin of 55.62%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Crocs's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 2.52.
Navigating Market Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 12.01 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 2.38 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 10.42, Crocs presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
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Why Insider Activity Matters in Finance Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Essential Transaction Codes Unveiled Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 signals 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 Crocs's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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