WARD KLEIN's Recent Buy: Acquires $160K In Caleres Stock

WARD KLEIN, Director at Caleres CAL, reported an insider buy on June 6, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that KLEIN made a notable purchase of 4,564 shares of Caleres, valuing at $160,013.

The latest update on Thursday morning shows Caleres shares down by 0.0%, trading at $33.82.

Get to Know Caleres Better

Caleres Inc is a footwear retailer in the United States. The Company's business are organized into two reportable segments are famous Footwear and Brand Portfolio. The famous Footwear segment is comprised of famous Footwear retail stores, famousfootwear.com and famousfootwear.ca. The Brand Portfolio segment offers retailers and consumers a carefully cultivated portfolio of top brands. This segment is comprised of wholesale operations that designs, develops, sources, manufactures, markets and distributes branded, licensed and private-label footwear to online retailers, national chains, department stores, mass merchandisers and independent retailers, as well as Company owned famous Footwear, Sam Edelman, Naturalizer and Allen Edmonds stores and e-commerce businesses.

A Deep Dive into Caleres's Financials

Decline in Revenue: Over the 3 months period, Caleres faced challenges, resulting in a decline of approximately -5.44% in revenue growth as of 30 April, 2024. This signifies a reduction 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 46.89%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Caleres's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.88.

Debt Management: Caleres's debt-to-equity ratio is below the industry average at 1.39, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 7.18 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.41, 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): The company's EV/EBITDA ratio of 10.1 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

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.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Caleres's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.