Insider Confidence On Display: JOHN REPLOGLE Acquires $249K In Crocs Stock

Disclosed in the latest SEC filing, a significant insider purchase on March 14, involves JOHN REPLOGLE, Board Member at Crocs CROX.

What Happened: REPLOGLE's recent purchase of 1,972 shares of Crocs, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, reflects confidence in the company's potential. The total transaction value is $249,949.

Crocs shares are trading up 1.71% at $128.15 at the time of this writing on Friday morning.

Get to Know Crocs Better

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.

Crocs: A Financial Overview

Revenue Growth: Crocs displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 1.58%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company excels with a remarkable gross margin of 55.28%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Crocs's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 4.19.

Debt Management: Crocs's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.37, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 9.85 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.97, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 8.67, Crocs presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Exploring Key Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Crocs's Insider Trades.

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