John Replogle, a director at Crocs Inc (CROX), recently bought 2,240 shares. The buy increased his stake by 32%, and came to a total cost of $252,222.
Replogle was the last buyer with a 1,996 share pickup in August for just over $247,000. And he was a buyer in March for a similar amount. Over that same time period, several company insiders have been sellers of shares, including the CEO, who shed 1% of his stake.
Overall, Crocs insiders own 2.9% of shares.
The footwear and accessory manufacturer is up 28% over the past year, slightly lagging the overall stock market.
Revenues rose by just 2%, and earnings are up 13%, but shares are still relatively inexpensive at less than 9 times forward earnings.
Crocs also sports a 20% profit margin, a relatively high level for a manufacturing-based company.
Action to take: Crocs shares have pulled back nearly 30% from their summer highs near $160 per share, and just had a big drop following earnings.
For now, interested investors may want to hold off until the stock forms a base and is ready to trend higher. Currently, Crocs does not pay a dividend.
For traders, shares are likely to trend lower in the short-term, the quarterly insider buy from a company director notwithstanding. The January 2025 $95 puts, last trading for about $3.30, could see mid-double-digit returns or better from a further decline in shares in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.