On October 16, 2023, Deborah Ferree, Vice Chair and Chief Product Officer of Designer Brands Inc (DBI, Financial), 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 233,000 shares sold and no shares purchased.
Designer Brands Inc is a leading branded footwear and accessories retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear and accessories for women, men and kids. The company operates through three segments: The U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment.
The insider's recent sell has raised questions about the company's current valuation and future prospects. To understand the implications of this move, it's essential to analyze the relationship between insider transactions and the stock's price.
The insider transaction history for Designer Brands Inc shows a trend of more sells than buys over the past year. There have been 14 insider sells and no insider buys. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of Designer Brands Inc were trading for $12.14 apiece, giving the stock a market cap of $724.913 million. The price-earnings ratio is 6.11, lower than both the industry median of 17.63 and the company’s historical median price-earnings ratio. This suggests that the stock is undervalued when compared to its peers and its own historical data.
The GuruFocus Value of Designer Brands Inc is $15.65, resulting in a price-to-GF-Value ratio of 0.78. This indicates that the stock is modestly undervalued. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Despite the insider's recent sell, the valuation metrics suggest that Designer Brands Inc's stock is undervalued. This could present an opportunity for investors to buy the stock at a discount. However, the trend of insider sells over the past year may also signal caution. Investors should consider these factors and conduct further research before making investment decisions.
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.
