Rocky Brands , Inc. (NASDAQ:RCKY) reported a significant transaction by one of its executives, according to a recent filing with the Securities and Exchange Commission. Robert Burton Moore Jr., a director of the company, sold 9,000 shares of common stock at an average price of $38.82, totaling approximately $349,380.
The transactions occurred on June 5, 2024, and were disclosed in a Form 4 filing with the SEC on June 7, 2024. The sale price represents a weighted average, as the shares were sold in a range from $38.195 to $39.13. Following the sale, Moore still owns 29,517 shares of Rocky Brands, indicating continued investment in the company.
On the same day, Moore also engaged in transactions characterized by the acquisition of shares. He acquired 5,000 shares at $28.07 per share and another 4,000 shares at $29.43 per share. The total value for these acquisitions amounted to $258,070. These transactions reflect the exercise of stock options, which are rights to buy shares at a predetermined price, suggesting confidence in the company's future performance.
Rocky Brands, headquartered in Nelsonville, Ohio, is a manufacturer of premium footwear and apparel known for its quality and durability. The company has a strong presence in the industry and continues to maintain its reputation as a reliable manufacturer.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's stock value and future prospects. Transactions by company insiders can be indicative of their belief in the company's current valuation and future business prospects.
In other recent news, Rocky Brands began the year with a robust first quarter, surpassing both sales and earnings expectations. Baird, an independent analyst firm, has responded to this strong performance by raising the financial outlook for Rocky Brands, increasing the stock price target to $32 from the previous $28. The firm noted that these positive results were driven by improved inventory management and the strong demand for the company's lifestyle products.
Rocky Brands' full-year revenue projections have been adjusted to the higher end of their previous guidance. Baird has also increased its expected earnings per share (EPS) for 2024 to $2.90, factoring in the anticipated benefits from debt refinancing. The company's gross profit reached $44.1 million, equating to 39.1% of sales, while net income stood at $2.6 million, or $0.34 per diluted share.
Despite supply chain challenges, Rocky Brands has managed to decrease its total debt by 29% from the previous year. The company also signed an improved ABL facility with Bank of America, expected to yield significant interest savings. These are some of the recent developments for Rocky Brands, which has demonstrated resilience and appears well-positioned for the fiscal year.
InvestingPro Insights
As investors digest the recent insider transactions at Rocky Brands, Inc. (NASDAQ:RCKY), it's worth noting some key financial metrics and expert insights that may influence the perception of the company's stock. With a market capitalization of $280.15 million and a P/E ratio standing at 20.86, the company presents a mixed picture of valuation and growth potential. The adjusted P/E ratio for the last twelve months as of Q1 2024 has been calculated at 16.71, which might suggest a more attractive valuation when considering the company's earnings.
While the company's revenue has seen a decline of 16.93% over the last twelve months as of Q1 2024, the quarterly revenue growth during Q1 2024 was positive at 2.23%. This could indicate a potential turnaround or stabilization in sales. Additionally, Rocky Brands has managed to maintain a gross profit margin of 38.87%, which is a testament to its pricing power and cost management strategies.
Two InvestingPro Tips that stand out for Rocky Brands include the fact that the company has a high shareholder yield and maintains a strong free cash flow yield. These factors, along with its consistent dividend payments over the past 12 years, could be attractive to income-focused investors. Moreover, with liquid assets exceeding short-term obligations, the company appears to be in a solid financial position to meet its immediate liabilities.
For those interested in gaining more insights and tips on Rocky Brands, InvestingPro offers additional analysis and metrics. There are currently 11 more InvestingPro Tips available on the platform, which can be accessed at https://www.investing.com/pro/RCKY. To enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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