Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on June 6, David Powers, President & CEO at Deckers Outdoor (NYSE:DECK), executed a substantial insider sell as per the latest SEC filing.
What Happened: Powers opted to sell 10,955 shares of Deckers Outdoor, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $11,902,607.
During Friday's morning session, Deckers Outdoor shares down by 2.04%, currently priced at $1043.72.
All You Need to Know About Deckers Outdoor Deckers Outdoor Corp designs and sells casual and performance footwear, apparel, and accessories. Primary brands include UGG, Teva, and Sanuk. The company distributes Majority of its products through its wholesale business, but it also has a substantial direct-to-consumer business with its company-owned retail stores and websites. Majority of its sales are in the United States, although the company also has retail stores and distributors throughout Europe, Asia, Canada, and Latin America. It has structured their reporting around six segments which inlcudes the wholesale operations of specific brands like UGG, HOKA, Teva, Sanuk, and Other brands, alongside a segment focused on direct-to-consumer (DTC) operations.
A Deep Dive into Deckers Outdoor's Financials Revenue Growth: Deckers Outdoor displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 21.25%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Insights into Profitability:
- Gross Margin: With a high gross margin of 56.21%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): Deckers Outdoor's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 4.98.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: Deckers Outdoor's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 36.54.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.47 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 24.91 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
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Understanding the Significance of Insider Transactions 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.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Important Transaction Codes Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Deckers Outdoor's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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