Board Member Of Five Below Makes $1.09M Sale

A substantial insider sell was reported on December 15, by Michael F. Devine, III, Board Member at Five Below (NASDAQ:FIVE), based on the recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, III sold 6,000 shares of Five Below. The total transaction value is $1,091,040.

In the Tuesday's morning session, Five Below's shares are currently trading at $180.54, experiencing a down of 0.61%.

Discovering Five Below: A Closer Look

Five Below Inc is a specialty value retailer offering merchandise targeted at the tween and teen demographic. The Company's edited assortment of products includes select brands and licensed merchandise. It derives revenue from sales of the Company's merchandise to customers.

Key Indicators: Five Below's Financial Health

Positive Revenue Trend: Examining Five Below's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 23.06% as of 31 October, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 33.85%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Five Below's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.66.

Debt Management: With a below-average debt-to-equity ratio of 1.03, Five Below adopts a prudent financial strategy, indicating a balanced approach to debt management.

Market Valuation:

• Price to Earnings (P/E) Ratio: Five Below's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 32.62.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.27, Five Below's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Five Below's EV/EBITDA ratio stands at 19.78, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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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 the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Cracking Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Five Below's Insider Trades.

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