Insider Unloading: THOMAS SMACH Sells $1.43M Worth Of Crocs Shares

On May 14, a recent SEC filing unveiled that THOMAS SMACH, Board Member at Crocs CROX made an insider sell.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that SMACH sold 10,174 shares of Crocs. The total transaction amounted to $1,427,577.

The latest market snapshot at Wednesday morning reveals Crocs shares up by 1.58%, trading at $147.61.

Get to Know Crocs Better

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.

Crocs's Financial Performance

Revenue Growth: Crocs's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 6.16%. This signifies a substantial increase in the company's 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.

Exploring Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 55.62%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Crocs exhibits below-average bottom-line performance with a current EPS of 2.52.

Debt Management: Crocs's debt-to-equity ratio stands notably higher than the industry average, reaching 1.29. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Crocs's P/E ratio of 11.26 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.23 is lower than the industry average, implying a discounted valuation for Crocs's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 9.88 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Exploring the Significance of Insider Trading

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.