On September 8, 2023, Thomas Garcia, the Chief Administrative Officer of Deckers Outdoor Corp (DECK, Financial), sold 3,596 shares of the company. This move is part of a series of insider sell transactions that have been occurring over the past year.
Deckers Outdoor Corp is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The company's portfolio of brands includes UGG, Koolaburra, HOKA ONE ONE, Teva, and Sanuk, which are sold in more than 50 countries through select department and specialty stores, company-owned and operated retail stores, and select online stores, including company-owned websites.
Thomas Garcia has been with Deckers Outdoor Corp for several years, serving in various roles before becoming the Chief Administrative Officer. His insider trading activities provide valuable insights into the company's financial health and future prospects.
Over the past year, the insider has sold a total of 10,191 shares and has not purchased any shares. This trend is mirrored in the overall insider transaction history for Deckers Outdoor Corp, which shows zero insider buys and 19 insider sells over the past year.
The relationship between insider sell activities and the stock price is often complex. However, it's worth noting that the stock price has remained relatively stable despite the insider's sell activities. On the day of the insider's recent sell, shares of Deckers Outdoor Corp were trading for $525 apiece, giving the stock a market cap of $14.22 billion.
The price-earnings ratio of Deckers Outdoor Corp is 27.00, which is higher than the industry median of 18.1 and the company’s historical median price-earnings ratio. This suggests that the stock is currently overvalued compared to its peers and its own historical data.
The GuruFocus Value of Deckers Outdoor Corp is $481.39, resulting in a price-to-GF-Value ratio of 1.09. This indicates that the stock is modestly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's sell activities, coupled with the stock's current valuation, suggest that investors should exercise caution when considering investing in Deckers Outdoor Corp. As always, it's crucial to conduct thorough research and consider various factors before making investment decisions.
