Witnessing An Insider Decision, Dustin Combs Exercises Options Valued At $150K At Weyco Group

A large exercise of company stock options by Dustin Combs, VP at Weyco Group WEYS was disclosed in a new SEC filing on December 26, as part of an insider exercise.

What Happened: A notable Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission revealed that Combs, VP at Weyco Group, exercised stock options for 19,077 shares of WEYS, resulting in a transaction value of $150,364.

Weyco Group shares are trading down 0.37% at $32.22 at the time of this writing on Wednesday morning. Since the current price is $32.22, this makes Combs's 19,077 shares worth $150,364.

Unveiling the Story Behind Weyco Group

Weyco Group Inc is a company, engaged in the manufacturing, designing and distribution of footwear. The company designs and markets footwear for men, women, and children. The company organizes its business into two segments; the North American wholesale and the North American retail segment. It markets its apparel, accessories, and footwear under the brand name of Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake. The company has operational footprints in the United States, Canada, Europe, Asia, and Australia among others. It generates a majority of its revenue from the United States.

Financial Insights: Weyco Group

Revenue Growth: Weyco Group's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -13.22%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Interpreting Earnings Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 42.96%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Weyco Group's EPS reflects a decline, falling below the industry average with a current EPS of 0.99.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.05.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 9.71 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.92 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 6.05, Weyco Group presents an attractive value opportunity.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial 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 Weyco Group's Insider Trades.

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