On July 12, 2023, Deborah Ferree, Vice Chair and Chief Product Officer of Designer Brands Inc (DBI, Financial), sold 50,000 shares of the company. This move is part of a series of transactions Ferree has made over the past year, during which she sold a total of 118,636 shares and made no purchases.
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. With a diverse portfolio of globally recognized brands, Designer Brands Inc has established a strong presence in the market.
The insider transaction history for Designer Brands Inc shows a trend towards selling rather than buying. Over the past year, there have been 9 insider sells and 0 insider buys. This could be indicative of the insiders' perception of the company's future performance.
On the day of Ferree's recent sale, shares of Designer Brands Inc were trading at $10.91, giving the company a market cap of $642.922 million. The price-earnings ratio stands at 4.65, significantly lower than the industry median of 16.49 and the company's historical median price-earnings ratio. This suggests that the stock is undervalued compared to its peers and its own historical performance.
The GuruFocus Value of Designer Brands Inc is $15.59, resulting in a price-to-GF-Value ratio of 0.7. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. In the case of Designer Brands Inc, the GF Value suggests potential for price appreciation, which contrasts with the recent insider selling activity.
In conclusion, the recent insider selling activity, coupled with the stock's undervaluation based on its price-earnings ratio and GF Value, presents a mixed picture for Designer Brands Inc. Investors should consider these factors along with the company's fundamentals and market conditions when making investment decisions.
