Revealing a significant insider sell on September 26, Morris Goldfarb, CEO at G-III Apparel Group GIII, as per the latest SEC filing.

What Happened: Goldfarb’s recent move involves selling 167,014 shares of G-III Apparel Group. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $5,189,524.

The latest update on Friday morning shows G-III Apparel Group shares down by 0.89%, trading at $30.0.

Unveiling the Story Behind G-III Apparel Group

G-III Apparel Group Ltd is a textile company. It makes a wide range of apparel, footwear, and accessories that it sells under its own brands, licensed brands, and private-label brands. G-III has a substantial portfolio for licensed and proprietary brands, anchored by five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld. The company has two reportable operations: Wholesale Operations and Retail Operations. The Wholesale operations segment includes sales of products under brands licensed by from third parties, as well as sales of products under its own brands and private label brands. The retail operations segment consists primarily of Wilsons Leather, G.H. Bass, and DKNY retail stores. It derives most of its revenues from Wholesale operations.

G-III Apparel Group: Delving into Financials

Negative Revenue Trend: Examining G-III Apparel Group’s financials over 3 months reveals challenges. As of 31 July, 2024, the company experienced a decline of approximately -2.27% in revenue growth, reflecting 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.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 42.79%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): G-III Apparel Group’s EPS reflects a decline, falling below the industry average with a current EPS of 0.54.

Debt Management: With a below-average debt-to-equity ratio of 0.42, G-III Apparel Group adopts a prudent financial strategy, indicating a balanced approach to debt management.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: G-III Apparel Group’s P/E ratio of 7.6 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.46 is lower than the industry average, implying a discounted valuation for G-III Apparel Group’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 4.94, G-III Apparel Group could be considered undervalued.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Delving Into the Significance of Insider Transactions

It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Cracking Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of G-III Apparel Group’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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