Dwight Eric Smith, a director at Rocky Brands , Inc. (NASDAQ:RCKY), recently increased his stake in the company by purchasing 500 shares of common stock. The shares were acquired at a price of $20.47 each, totaling an investment of $10,235. Following this transaction, Smith now holds 9,333 shares of the company's stock directly. This move reflects a continued confidence in Rocky Brands, a footwear manufacturer based in Nelsonville, Ohio.
In other recent news, footwear company Rocky Brands faced a cut in its price target from Baird, which reduced its outlook from $32 to $25 while maintaining a neutral rating on the stock. The decision followed Rocky Brands' third-quarter earnings per share (EPS) falling short of expectations by $0.34, attributed to lower-than-expected revenue and increased spending. The company's revenue missed estimates by 6.5%, primarily due to weaker wholesale performance, and higher-than-anticipated selling, general, and administrative (SG&A) expenses.
Rocky Brands has since revised its revenue guidance for 2024 to the lower end of the previously provided range. The company's executives anticipate only modest wholesale growth in the coming year, with expectations set around the low-single-digits percentage range.
On the other hand, Rocky Brands reported a slight decrease in total sales by 2.4% year-over-year to $114.5 million, with a significant decline in wholesale sales. However, retail sales saw an increase of 11.8% to $26.8 million, and the company improved its gross profit margin to 38.1% of sales. These are the recent developments for Rocky Brands.
InvestingPro Insights
Dwight Eric Smith's recent purchase of Rocky Brands shares aligns with several key metrics and trends identified by InvestingPro. The company's stock is currently trading near its 52-week low, with a price-to-book ratio of 0.68 as of the last twelve months ending Q3 2024. This suggests that the stock may be undervalued, potentially making it an attractive investment opportunity.
InvestingPro Tips highlight that Rocky Brands is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.4. This could indicate that the stock is underpriced compared to its growth prospects. Additionally, the company has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns despite recent market challenges.
The stock's recent performance has been challenging, with InvestingPro Data showing a 33.79% decline in the past month and a 39.83% drop over the last six months. However, analysts remain optimistic, predicting profitability for the company this year. The current dividend yield stands at 3.05%, which may be attractive to income-focused investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Rocky Brands, providing a deeper understanding of the company's financial health and market position.
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