Options Exercise Update At Rocky Brands: CURTIS LOVELAND Engages

CURTIS LOVELAND, Assistant Secretary at Rocky Brands RCKY, reported a large exercise of company stock options on June 12, according to a new SEC filing.

What Happened: The latest Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission uncovered LOVELAND, Assistant Secretary at Rocky Brands, exercising stock options for 4,000 shares of RCKY. The total transaction was valued at $29,120.

The Thursday morning update indicates Rocky Brands shares down by 0.0%, currently priced at $36.71. At this value, LOVELAND's 4,000 shares are worth $29,120.

All You Need to Know About Rocky Brands

Rocky Brands Inc acts as a designer, manufacturer, and marketer of premium-quality footwear and apparel. The company's family of brands includes Rocky, Georgia Boot, Durango, Lehigh, Creative Recreation, and the licensed brand Michelin footwear. The company operates its business through three business segments: Wholesale, Retail and Contract. It generates majority of the revenue from Wholesale segment.

Rocky Brands: Delving into Financials

Revenue Growth: Rocky Brands displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 2.23%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

• Gross Margin: With a low gross margin of 39.1%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Rocky Brands's EPS reflects a decline, falling below the industry average with a current EPS of 0.34.

Debt Management: With a high debt-to-equity ratio of 0.71, Rocky Brands faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 20.36 is lower than the industry average, implying a discounted valuation for Rocky Brands's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.58 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Rocky Brands's EV/EBITDA ratio, lower than industry averages at 8.62, indicates attractively priced shares.

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 Important

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Understanding Crucial 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 Rocky Brands's Insider Trades.

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