In a recent stock transaction, Bonita C. Stewart, a director at Deckers Outdoor Corp (NYSE:DECK), sold 9,000 shares of the company's common stock. The shares were sold at prices ranging from $175.41 to $175.43 per share, amounting to a total transaction value of approximately $1.58 million. Following this transaction, Stewart now holds 44,988 shares directly in the company.
The sale was executed as part of a pre-planned trading strategy under a Rule 10b5-1 Trading Plan, as noted in the filing. This type of plan allows company insiders to set up a predetermined schedule for selling stocks, which can help avoid potential accusations of insider trading.
Deckers Outdoor Corp, known for its popular footwear brands, continues to be a significant player in the rubber and plastics footwear industry. This transaction comes amidst ongoing market interest in the company's financial performance and strategic direction.
In other recent news, Deckers Outdoor Corporation has been the subject of several analyst upgrades following robust quarterly results and an encouraging financial outlook. TD (TSX:TD) Cowen raised Deckers' price target to $185, citing impressive performance in the recent quarter and a promising future for the company. Telsey Advisory Group also adjusted their financial outlook for Deckers, increasing the price target to $190, in light of the company's strong sales growth. Evercore ISI lifted Deckers' price target from $185 to $195, following the company's earnings per share surpassing expectations.
Deckers' financial performance has been marked by substantial top-line growth, led by the company's two largest brands, UGG and HOKA. The company reported significant increases in sales across all channels and regions, with HOKA achieving a record revenue for the second fiscal quarter of 2025. Deckers' gross margin also exceeded forecasts, benefiting from the continued sales strength of its higher-margin products.
Following these positive results, Deckers raised its full-year financial outlook, anticipating annual revenue to hit $4.8 billion. However, Citi maintained a neutral rating on the stock, citing valuation concerns and the potential for significant multiple expansion being limited due to expected increase in competition for the Hoka brand over the coming 12 months.
Deckers' second-quarter earnings per share of $1.59 surpassed consensus estimates of $1.23, attributed to robust growth in its Hoka and UGG brands. The company's gross margin also outperformed expectations, with a significant increase in the second quarter. These recent developments underscore Deckers' ongoing growth and strategic market positioning.
InvestingPro Insights
Deckers Outdoor Corp (NYSE:DECK) has been experiencing strong financial performance, which aligns with the recent insider transaction. According to InvestingPro data, the company's market capitalization stands at $26.98 billion, reflecting its substantial presence in the footwear industry.
The company's robust financial health is evident in its revenue growth of 19.25% over the last twelve months, with quarterly revenue growth of 20.09% as of Q2 2025. This growth trajectory supports the stock's impressive performance, with a 69.6% price return over the past year and a 59.45% return year-to-date.
InvestingPro Tips highlight that Deckers is trading near its 52-week high, with the current price at 96.29% of its peak. This aligns with the company's strong market position and recent financial results. Additionally, the company holds more cash than debt on its balance sheet, indicating financial stability and potential for future growth initiatives.
It's worth noting that while the stock has shown significant returns, it is trading at a high P/E ratio of 31.01, which may be a consideration for value-oriented investors. However, this should be viewed in the context of the company's growth prospects and market position.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Deckers Outdoor Corp, providing a deeper insight into the company's financial health and market position.
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