Chief Creative Officer Of Guess Makes $6.78M Sale

PAUL MARCIANO, Chief Creative Officer at Guess GES, reported an insider sell on December 5, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that MARCIANO sold 300,000 shares of Guess. The total transaction amounted to $6,784,095.

Guess shares are trading down 0.88% at $21.48 at the time of this writing on Wednesday morning.

All You Need to Know About Guess

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.

Financial Insights: Guess

Positive Revenue Trend: Examining Guess's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.8% as of 31 October, 2023, 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.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 44.71%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.04, Guess showcases strong earnings per share.

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.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 8.09 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.55 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.1, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Understanding the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.