Guess 10% Owner Trades $14.13M In Company Stock

Revealing a significant insider sell on December 27, MAURICE MARCIANO, 10% Owner at Guess GES, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that MARCIANO sold 600,000 shares of Guess. The total transaction amounted to $14,131,440.

In the Wednesday's morning session, Guess's shares are currently trading at $23.86, experiencing a down of 0.4%.

Get to Know Guess Better

Guess? Inc designs, markets distribute, and licenses contemporary apparel and accessories that reflect European fashion sensibilities under brands including Guess, Marciano, and G by Guess. The company has five reportable segments namely Americas Retail, Americas Wholesale, Europe, Asia, and licensing. It generates maximum revenue from the Europe segment.

Guess: A Financial Overview

Revenue Growth: Guess's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2023, the company achieved a revenue growth rate of approximately 2.8%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Interpreting Earnings Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 44.71%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Guess's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.04.

Debt Management: With a below-average debt-to-equity ratio of 2.45, Guess adopts a prudent financial strategy, indicating a balanced approach to debt management.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 8.94 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.6, 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): At 8.56, Guess's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Unmasking the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

A Closer Look at Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Guess's Insider Trades.

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