On May 14, a recent SEC filing unveiled that Ian Bickley, Board Member at Crocs CROX made an insider sell.
What Happened: Bickley’s decision to sell 3,044 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 $352,784.
During Wednesday’s morning session, Crocs shares down by 1.25%, currently priced at $118.76.
Unveiling the Story Behind Crocs
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.
Understanding the Numbers: Crocs’s Finances
Revenue Growth: Crocs’s revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -0.14%. This indicates a decrease in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, 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: Achieving a high gross margin of 57.78%, the company performs well in terms of cost management and profitability within its sector.
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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: Crocs’s debt-to-equity ratio surpasses industry norms, standing at 0.95. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Market Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 7.42 is lower than the industry average, implying a discounted valuation for Crocs’s stock.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.72, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 7.71, Crocs presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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Why Insider Transactions Are Important
Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
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.
Unlocking the Meaning of Transaction Codes
When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.
