Caleres Director Trades $160K In Company Stock

A new SEC filing reveals that Mahendra R Gupta, Director at Caleres CAL, made a notable insider purchase on June 6,.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Gupta increased their investment in Caleres by purchasing 4,564 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $160,013.

Caleres shares are trading down 0.0% at $33.82 at the time of this writing on Thursday morning.

Unveiling the Story Behind Caleres

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.

Caleres: A Financial Overview

Revenue Challenges: Caleres's revenue growth over 3 months faced difficulties. As of 30 April, 2024, the company experienced a decline of approximately -5.44%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: Achieving a high gross margin of 46.89%, the company performs well in terms of cost management and profitability within its sector.

• 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: With a below-average debt-to-equity ratio of 1.39, Caleres adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 7.18 is lower than the industry average, implying a discounted valuation for Caleres's stock.

• 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): With a below-average EV/EBITDA ratio of 10.1, Caleres presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

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.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

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

A Closer Look at Important 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 Caleres's Insider Trades.

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