Insider Confidence On Display: Bruce K Thorn Acquires $160K In Caleres Stock

Bruce K Thorn, Board Member at Caleres CAL, reported an insider buy on June 6, according to a new SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Thorn purchased 4,564 shares of Caleres, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $160,013.

Monitoring the market, Caleres's shares down by 0.0% at $33.82 during Thursday's morning.

All You Need to Know About 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.

A Deep Dive into Caleres's Financials

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. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 46.89%, reflecting superior 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 0.88, Caleres showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.39.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 7.18, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.41 is lower than the industry average, implying a discounted valuation for Caleres's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Caleres's EV/EBITDA ratio at 10.1 suggests potential undervaluation, falling below industry averages.

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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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.