Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on May 29, Thomas Garcia, Chief Administrative Officer at Deckers Outdoor (NYSE:DECK), executed a substantial insider sell as per the latest SEC filing.
What Happened: Garcia opted to sell 4,000 shares of Deckers Outdoor, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $4,299,440.
Tracking the Thursday's morning session, Deckers Outdoor shares are trading at $1064.92, showing a down of 0.0%.
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.
Breaking Down Deckers Outdoor's Financial Performance Revenue Growth: Over the 3 months period, Deckers Outdoor showcased positive performance, achieving a revenue growth rate of 21.25% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Insights into Profitability:
- Gross Margin: The company sets a benchmark with a high gross margin of 56.21%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): Deckers Outdoor's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 4.98.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: Deckers Outdoor's current Price to Earnings (P/E) ratio of 36.52 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
- 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): Deckers Outdoor's EV/EBITDA ratio of 24.9 exceeds industry averages, indicating a premium valuation in the market
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Understanding the Significance of Insider Transactions In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes To Focus On Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Deckers Outdoor's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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