NELSONVILLE, Ohio—Robert Burton Moore Jr., a director at Rocky Brands , Inc. (NASDAQ:RCKY), recently sold 5,000 shares of the company's common stock. The shares were sold at a price of $20.7464 each, resulting in a total transaction value of approximately $103,732. Following this sale, Moore retains ownership of 25,568 shares in the company.
In other recent news, Rocky Brands has experienced a series of financial developments. The footwear company's third-quarter earnings per share (EPS) fell short of expectations by $0.34, primarily due to lower-than-anticipated revenue and increased spending. This shortfall in revenue, missing estimates by 6.5%, was mainly attributed to weaker wholesale performance. In response to these results, Rocky Brands has revised its revenue guidance for 2024 to the lower end of the previously provided range.
Baird, an independent global investment firm, adjusted its stance on Rocky Brands by reducing its price target from $32.00 to $25.00, while maintaining a neutral rating on the stock. The firm anticipates only modest wholesale growth in the coming year, with expectations set around the low-single-digits percentage range. In addition to these financial adjustments, Rocky Brands reported a slight decrease in total sales by 2.4% year-over-year to $114.5 million.
Despite these challenges, retail sales saw an increase of 11.8% to $26.8 million, and the company improved its gross profit margin to 38.1% of sales. These recent developments reflect the current retail environment and the challenges faced by Rocky Brands.
InvestingPro Insights
The recent insider sale by Robert Burton Moore Jr. comes at a time when Rocky Brands, Inc. (NASDAQ:RCKY) is experiencing some market volatility. According to InvestingPro data, the stock has seen a significant decline, with a 30.88% drop in the three-month price total return and a 38.65% decrease over the past six months. This aligns with an InvestingPro Tip indicating that the stock price movements are quite volatile.
Despite the recent downturn, Rocky Brands maintains some positive financial indicators. The company's P/E ratio stands at 12.68, which is relatively low compared to its near-term earnings growth potential, as highlighted by one of the InvestingPro Tips. Additionally, the company boasts a dividend yield of 2.84% and has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns even in challenging times.
From a valuation perspective, Rocky Brands appears to be trading at a discount. With a price-to-book ratio of 0.74 for the last twelve months as of Q3 2024, the stock is valued below its book value. This could potentially signal an undervaluation, especially considering that analysts predict the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Rocky Brands, providing a deeper insight into the company's financial health and market position.
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