Disclosed on May 14, THOMAS SMACH, Board Member at Crocs CROX, executed a substantial insider sell as per the latest SEC filing.
What Happened: SMACH’s decision to sell 9,139 shares of Crocs was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,000,446.
Monitoring the market, Crocs‘s shares down by 1.25% at $118.76 during Wednesday’s 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 are the United States and other Countries.
Crocs: Delving into Financials
Negative Revenue Trend: Examining Crocs’s financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -0.14% in revenue growth, reflecting a decrease in 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.
Key Insights into Profitability Metrics:
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Gross Margin: The company maintains a high gross margin of 57.78%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Crocs’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.85.
Debt Management: With a high debt-to-equity ratio of 0.95, Crocs faces challenges in effectively managing its debt levels, indicating potential financial strain.
Navigating Market Valuation:
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Price to Earnings (P/E) Ratio: Crocs’s P/E ratio of 7.42 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a P/S ratio of 1.72 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Crocs’s EV/EBITDA ratio, lower than industry averages at 7.71, indicates attractively priced shares.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Unmasking the Significance of Insider Transactions
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.
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.
Transaction Codes To Focus On
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Crocs’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
