Deckers Outdoor President & CEO Sold $2.64M In Company Stock

Stefano Caroti, President & CEO at Deckers Outdoor DECK, executed a substantial insider sell on November 20, according to an SEC filing.

What Happened: Caroti's decision to sell 15,000 shares of Deckers Outdoor was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $2,635,950.

At Thursday morning, Deckers Outdoor shares are up by 0.42%, trading at $177.1.

All You Need to Know 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.

Deckers Outdoor: Delving into Financials

Positive Revenue Trend: Examining Deckers Outdoor's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.09% as of 30 September, 2024, showcasing a substantial increase in 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.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 55.92%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Deckers Outdoor's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.59.

Debt Management: Deckers Outdoor's debt-to-equity ratio is below the industry average at 0.12, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 31.16 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.84 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 21.52, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Delving Into 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.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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.

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