Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was reported on December 27, that PAUL MARCIANO, Chief Creative Officer at Guess (NYSE:GES) executed a significant insider sell, according to an SEC filing.
What Happened: MARCIANO opted to sell 300,000 shares of Guess, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $7,065,540.
Tracking the Wednesday's morning session, Guess shares are trading at $23.34, showing a down of 2.59%.
Get to Know Guess Better Guess? Inc designs, markets distribute, and licenses contemporary apparel and accessories that reflect European fashion sensibilities under brands including Guess, Marciano, and G by Guess. The company has five reportable segments namely Americas Retail, Americas Wholesale, Europe, Asia, and licensing. It generates maximum revenue from the Europe segment.
Unraveling the Financial Story of Guess Revenue Growth: Guess's remarkable performance in 3 months is evident. As of 31 October, 2023, the company achieved an impressive revenue growth rate of 2.8%. This signifies a substantial 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.
Holistic Profitability Examination:
- Gross Margin: The company maintains a high gross margin of 44.71%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Guess's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.04.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 8.94 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 0.6 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): Guess's EV/EBITDA ratio, lower than industry averages at 8.56, indicates attractively priced shares.
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The Impact of Insider Transactions on Investments Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Transaction Codes Worth Your Attention When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Guess's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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