BROOMFIELD, Colo.—Susan L. Healy, Executive Vice President and Chief Financial Officer of Crocs , Inc. (NASDAQ:CROX), recently acquired 1,000 shares of the company’s common stock. The shares were purchased on November 13, 2024, at a price of $99.70 per share, amounting to a total transaction value of $99,702.
Following this transaction, Healy holds a total of 22,652 shares in Crocs. This acquisition reflects her ongoing commitment to the company as it continues to navigate the competitive landscape of the rubber and plastics footwear industry.
In other recent news, Crocs, Inc. reported modest growth in its third quarter 2024 earnings, with consolidated revenues hitting $1.1 billion, a 2% increase year-over-year. Direct-to-consumer sales saw a 5% rise, while the Crocs brand experienced an 8% boost in revenue. However, the HEYDUDE brand, a subsidiary of Crocs, faced a revenue decline. Despite these challenges, Crocs adjusted its full-year revenue growth guidance for 2024 to approximately 3%, with the Crocs brand projected to grow by about 8% and HEYDUDE expected to decline by 14.5%.
In a recent development, Loop Capital downgraded Crocs' stock from Buy to Hold, reducing the price target to $110. This decision was influenced by a cautious outlook on the company's future performance, including a potential decline in 2025 estimates. Loop Capital expressed concerns over the current sales trajectory and challenges faced by the subsidiary brand, HEYDUDE. Despite efforts to improve performance, the brand continues to struggle, even with the appointment of Terence Reilly, known for his marketing expertise, as its new president.
InvestingPro Insights
Susan L. Healy's recent purchase of Crocs shares aligns with several positive indicators highlighted by InvestingPro. According to InvestingPro Tips, Crocs is currently trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation. This is further supported by the company's P/E ratio of 7.23, which is considerably low for the footwear industry.
The CFO's decision to increase her stake comes at a time when the stock has experienced significant price volatility. InvestingPro data shows that Crocs' stock price has fallen 28.38% over the past month and 31.28% over the last six months. This decline has brought the stock to 60.4% of its 52-week high, potentially presenting a buying opportunity for those who believe in the company's long-term prospects.
Despite recent price challenges, Crocs maintains strong fundamentals. The company boasts a robust operating income margin of 26.16% for the last twelve months as of Q3 2024, indicating efficient operations. Additionally, Crocs has demonstrated profitability over the past year and analysts predict continued profitability for the current year.
It's worth noting that InvestingPro offers 16 additional tips for Crocs, providing investors with a comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the stock's recent volatility and the CFO's insider buying activity.
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