Insider Sell: Vice Chair, Chief Product Officer Deborah Ferree Sells 33,000 Shares of Designer ...
On October 17, 2023, Deborah Ferree, Vice Chair and Chief Product Officer of Designer Brands Inc (NYSE:DBI), sold 33,000 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen a total of 266,000 shares sold and no shares purchased.
Designer Brands Inc is a major player in the retail industry, specializing in the design, production, and retail of footwear and accessories. The company operates through three segments: The U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment. The U.S. Retail segment includes DSW Designer Shoe Warehouse stores and dsw.com, offering a wide assortment of brand name and designer dress, casual and athletic footwear, and accessories.
The insider's recent sell-off has raised questions among investors and market watchers about the company's current valuation and future prospects. To gain a better understanding of this situation, it's crucial to analyze the relationship between insider trading activities and the stock's price.
The insider transaction history for Designer Brands Inc shows a clear trend of selling over the past year, with 15 insider sells and no insider buys. This could be interpreted as a lack of confidence in the company's future performance, which may have contributed to the stock's current price of $12.52 per share.
However, it's important to note that the company's market cap stands at $684.22 million, and its price-earnings ratio is 5.77, significantly lower than the industry median of 17.67. This suggests that the stock may be undervalued, offering potential opportunities for investors.
According to the GuruFocus Value, which is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Designer Brands Inc is modestly undervalued. With a price of $12.52 and a GuruFocus Value of $15.64, the stock has a price-to-GF-Value ratio of 0.8.
In conclusion, while the insider's recent sell-off may raise concerns, the company's current valuation suggests that the stock may be undervalued. Investors should keep a close eye on Designer Brands Inc's future performance and any further insider trading activities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
