Smart Money Move: Atticus Tysen Grabs $164K Worth Of Nordstrom Stock

A new SEC filing reveals that Atticus Tysen, Board Member at Nordstrom JWN, made a notable insider purchase on June 4,.

What Happened: Tysen made a significant move by purchasing 7,170 shares of Nordstrom as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $164,981.

The latest update on Wednesday morning shows Nordstrom shares up by 0.13%, trading at $22.32.

About Nordstrom

Nordstrom is a fashion retailer that operates about 93 department stores and more than 260 off-price Nordstrom Rack stores. The company also operates both full- and off-price e-commerce sites, two clearance stores, and seven Local locations. Nordstrom's largest merchandise categories are women's apparel (27% of 2023 sales), shoes (26% of 2023 sales), men's apparel (15% of 2023 sales), and beauty (13% of 2023 sales). Nordstrom, which traces its history to a shoe store opened in Seattle in 1901, continues to be partially owned and managed by members of the eponymous family.

Key Indicators: Nordstrom's Financial Health

Revenue Challenges: Nordstrom's revenue growth over 3 months faced difficulties. As of 30 April, 2024, the company experienced a decline of approximately -24.55%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 33.94%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Nordstrom's EPS reflects a decline, falling below the industry average with a current EPS of -0.24.

Debt Management: Nordstrom's debt-to-equity ratio surpasses industry norms, standing at 5.07. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 12.05 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.25 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): With an EV/EBITDA ratio lower than industry benchmarks at 5.72, Nordstrom presents an attractive value opportunity.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

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

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 Nordstrom's Insider Trades.

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