In a recent transaction on July 15, Carla Hendra, a director at Caleres Inc (NYSE:CAL), the footwear company formerly known as Brown Shoe Co Inc, sold 5,349 shares of company stock. The shares were sold at an average price of $33.07, totaling approximately $176,893.
The transaction left Hendra with zero shares in the company, signaling a complete divestment of her stake on the reported date. The sale was made public through a filing with the Securities and Exchange Commission on July 17.
Caleres Inc, headquartered in St. Louis, Missouri, operates in the footwear industry under a variety of brand names. The company has a long history, having undergone several name changes, with the most recent transition to Caleres Inc reflecting its broad portfolio of footwear brands.
Investors and the market often look to insider transactions such as these for signals about the company's performance and insider perspectives on the stock's value. The complete sell-off by a director might be interpreted in several ways, but without additional context, the motivations behind the transaction remain speculative.
The details of the transaction are now accessible to the public and can be found in the company's latest SEC filings. Caleres Inc's stock performance and any potential impact from insider transactions will continue to be watched closely by investors and market analysts.
In other recent news, Caleres Inc. reported robust financial results for the first quarter of 2024, surpassing earnings per share (EPS) expectations with a figure of $0.88 and achieving a record high gross margin of 47%. While sales were slightly below expectations at $659 million, the company's Brand Portfolio segment maintained a strong operating margin despite a minor dip in sales. Meanwhile, Famous Footwear saw flat sales, with a notable performance in the kids category.
The company's e-commerce platforms continued to grow, with investments made in marketing, international expansion, and systems upgrades. Shareholders received $18 million in share repurchases and dividends. Looking ahead, Caleres expects full-year sales to be flat to up 2%, with earnings per diluted share projected to be between $4.30 and $4.60.
For the second quarter, the company anticipates a 3% to 4% increase in consolidated net sales. Executives have expressed confidence in the back-to-school product pipeline, expecting strong performance in sneakers and casual categories. Despite some challenges, the company maintains its full-year 2024 guidance.
InvestingPro Insights
Amidst recent insider transactions at Caleres Inc (NYSE:CAL), investors may find it valuable to consider the latest financial metrics and analyst insights. Caleres, a renowned name in the footwear industry, has shown a mix of financial signals that could influence investor perception.
According to InvestingPro data, Caleres boasts a market capitalization of $1.21 billion, with a price-to-earnings (P/E) ratio of 7.34, indicating a potentially undervalued stock compared to earnings. The company has also maintained a gross profit margin of 45.11% over the last twelve months as of Q1 2025, reflecting its ability to retain a significant portion of revenue after accounting for the cost of goods sold.
InvestingPro Tips suggest that while Caleres is trading at a low earnings multiple, it is also trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 2.37. Additionally, the company's stock price movements have been quite volatile. Despite this volatility, Caleres has a commendable track record of maintaining dividend payments for 54 consecutive years, which could appeal to income-focused investors.
For those seeking deeper insights, InvestingPro offers a wealth of additional tips to guide investment decisions. There are currently 7 additional InvestingMpro Tips available for Caleres Inc, ranging from analysts' earnings revisions to predictions about the company's profitability this year. For a comprehensive investment analysis, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
As the market processes the recent insider sale by director Carla Hendra, these financial data points and expert insights can provide a broader context for evaluating Caleres Inc's current position and future prospects.
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