JOHN REPLOGLE, Director at Crocs CROX, disclosed an insider purchase on October 30, based on a new SEC filing.

What Happened: REPLOGLE’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, involves purchasing 2,240 shares of Crocs. The total transaction value is $252,221.

The latest update on Thursday morning shows Crocs shares down by 2.67%, trading at $108.6.

Delving into Crocs’s Background

Crocs Inc is engaged in the design, development, marketing, distribution, and sale of casual lifestyle footwear accessories for men, women, and children. The reportable geographic segments of the company include the Americas, Asia Pacific, and EMEA.

Financial Milestones: Crocs’s Journey

Revenue Growth: Crocs’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 1.58%. This signifies a substantial increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 59.63%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Crocs’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.38.

Debt Management: Crocs’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.03. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 7.92 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.62 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Crocs’s EV/EBITDA ratio at 7.24 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Transaction Codes To Focus On

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 Crocs’s Insider Trades.

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