Insider Unloading: ROBERT GREENBERG Sells $11.75M Worth Of Skechers USA Shares

ROBERT GREENBERG, Chief Executive Officer at Skechers USA SKX, disclosed an insider sell on November 30, according to a recent SEC filing.

What Happened: After conducting a thorough analysis, GREENBERG sold 200,000 shares of Skechers USA. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $11,745,030.

As of Friday morning, Skechers USA shares are up by 0.59%, currently priced at $59.26.

All You Need to Know About Skechers USA

Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments include Wholesale, and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.

Skechers USA: Delving into Financials

Revenue Growth: Skechers USA's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 7.8%. This signifies a substantial increase in the company's 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.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 52.94%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Skechers USA's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.94.

Debt Management: Skechers USA's debt-to-equity ratio is below the industry average at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 17.28 is lower than the industry average, implying a discounted valuation for Skechers USA's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.16 is lower than the industry average, implying a discounted valuation for Skechers USA's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Skechers USA's EV/EBITDA ratio at 10.45 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Skechers USA's Insider Trades.

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