Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Making a noteworthy insider sell on May 8, CURTIS LOVELAND, Assistant Secretary at Rocky Brands (NASDAQ:RCKY), is reported in the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, LOVELAND sold 9,713 shares of Rocky Brands. The total transaction value is $345,512.
Rocky Brands shares are trading down 0.0% at $36.16 at the time of this writing on Thursday morning.
Get to Know Rocky Brands Better Rocky Brands Inc acts as a designer, manufacturer, and marketer of premium-quality footwear and apparel. The company's family of brands includes Rocky, Georgia Boot, Durango, Lehigh, Creative Recreation, and the licensed brand Michelin footwear. The company operates its business through three business segments: Wholesale, Retail and Contract. It generates majority of the revenue from Wholesale segment.
Breaking Down Rocky Brands's Financial Performance Revenue Challenges: Rocky Brands's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -10.36%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Navigating Financial Profits:
- Gross Margin: The company shows a low gross margin of 39.1%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): Rocky Brands's EPS is below the industry average. The company faced challenges with a current EPS of 0.34. This suggests a potential decline in earnings.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 20.09 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.58, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 10.87, Rocky Brands presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Understanding the Significance of Insider Transactions While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Understanding Crucial Transaction Codes When analyzing 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 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 Rocky Brands's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.