Levi Strauss & Co. (NYSE:LEVI) director David A. Friedman has sold a significant portion of his holdings in the company, according to a recent SEC filing. The transactions, which took place on May 1 and May 2, 2024, resulted in the sale of a total of 16,666 shares of Class A Common Stock for a combined value exceeding $350,000.
The first sale on May 1 involved 12,500 shares at a price of $21.23 each, while the second sale on May 2 consisted of 4,166 shares priced at $22.00 per share. Following these transactions, Friedman's remaining stake in the company is 183,342 shares. The sales were executed under a pre-established trading plan in accordance with Rule 10b5-1, which allows insiders to sell shares at predetermined times to avoid concerns about insider trading.
These sales are noteworthy for investors tracking insider activity as a barometer for company performance and executive confidence in the business. The shares sold by Friedman are held by the David A. Friedman 1993 Revocable Trust, for which he serves as trustee. Levi Strauss & Co., headquartered in San Francisco, is a global leader in the apparel industry, known for its iconic denim products.
InvestingPro Insights
As Levi Strauss & Co. (NYSE:LEVI) navigates the market, recent insider activity has caught the eye of investors. To provide further context, let's delve into some key metrics and insights from InvestingPro that may inform investor perspectives on the company's current standing.
InvestingPro Data indicates a Market Cap of $8.76 billion, suggesting a substantial presence in the apparel industry. The company's P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 stands at 23.55, which may be considered high in relation to industry averages, indicating that investors are expecting higher earnings growth in the future. Additionally, Levi's Price / Book multiple during the same period is 4.43, reflecting a valuation that investors may consider rich compared to the company's book value.
From an operational standpoint, Levi has demonstrated a Gross Profit Margin of 57.54% over the last twelve months as of Q1 2024, showcasing its ability to maintain profitability in its core operations. However, revenue growth has seen a slight decline, with a -3.48% change year-over-year for the same period.
An InvestingPro Tip that stands out is Levi's consistent track record of raising its dividend for 5 consecutive years, which currently yields 2.19%. This could be a signal of the company's commitment to returning value to shareholders and might be particularly appealing for income-focused investors.
Moreover, the company has been lauded for a strong return over the last year, with a 59.8% price total return, which is impressive and could indicate market confidence in the brand and its products.
For those seeking more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/LEVI. For instance, while some analysts have revised their earnings expectations downwards for the upcoming period, it's worth noting that Levi operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing a degree of financial stability.
Investors interested in a deeper dive into Levi Strauss & Co.'s financials and market performance can benefit from the full range of insights available on InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 13 InvestingPro Tips for LEVI, including analysis on profitability, debt levels, and trading multiples.
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