ROBERT GREENBERG Executes Sell Order: Offloads $3.30M In Skechers USA Stock

On March 4, a recent SEC filing unveiled that ROBERT GREENBERG, Chief Executive Officer at Skechers USA SKX made an insider sell.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that GREENBERG executed a sale of 52,600 shares of Skechers USA with a total value of $3,298,935.

Skechers USA shares are trading down 3.65% at $56.36 at the time of this writing on Tuesday morning.

Get to Know Skechers USA Better

Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.

Skechers USA's Financial Performance

Revenue Growth: Skechers USA displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 12.82%. This indicates a notable increase in the company's 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: With a high gross margin of 53.26%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Skechers USA's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.66.

Debt Management: With a below-average debt-to-equity ratio of 0.45, Skechers USA adopts a prudent financial strategy, indicating a balanced approach to debt management.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 14.06 is lower than the industry average, implying a discounted valuation for Skechers USA's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.0 is lower than the industry average, implying a discounted valuation for Skechers USA's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 8.45, Skechers USA's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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The Relevance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 Skechers USA's Insider Trades.

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