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Summary

  • Seven insiders sold Genesco stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Six of these seven insiders decreased their holdings by more than 10%.

Genesco (NYSE:GCO) is engaged in the retail and wholesale of footwear, apparel, and accessories.

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Insider selling during the last 30 days

Here is a table of Genesco's insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Mimi VaughnSVPApril 93,180No44,845 shares6.6%
Jonathan CaplanSVPApril 411,790No53,158 shares18.2%
Marty DickensDirectorApril 13,832No12,734 shares23.1%
Roger SissonSVPApril 115,482No70,116 shares18.1%
James GulmiCFOMarch 25-2820,000No132,556 shares13.1%
Robert DennisCEOMarch 17-2655,000No213,385 shares20.5%
James EstepaSVPMarch 1914,934No57,297 shares20.7%

There have been 124,218 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Genesco's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
April 201434,2840
March 201489,9340
February 201400
January 20144,1750
December 2013128,3940
November 201300
October 201300
September 20138,0000
August 201300
July 201300
June 201385,2590
May 201300
April 20135,0000
March 201344,5750
February 201300
January 201300

There have been 399,621 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Genesco reported the fiscal 2014 full-year, which ended February 1, financial results on March 13 with the following highlights:

Revenue$2.6 billion
Net income$92.7 million
Cash$59.4 million
Debt$33.7 million

The seven insiders sold their shares after these results.

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Genesco's revenue growth has turned negative.

Outlook

Genesco's fiscal 2015 guidance is as follows:

Comparable sales growthLow single digit
EPS$5.40-$5.55

Competition

Genesco's competitors include American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch (NYSE:ANF), and Ascena Retail Group (NASDAQ:ASNA). Here is a table comparing these companies.

CompanyGCOAEOANFASNA
Market Cap:1.79B2.16B2.63B2.68B
Employees:9,2007,0009,00014,000
Qtrly Rev Growth (yoy):-0.01-0.07-0.120.02
Revenue:2.62B3.31B4.12B4.80B
Gross Margin:0.500.340.630.57
EBITDA:231.92M355.97M448.45M490.40M
Operating Margin:0.060.070.050.07
Net Income:92.95M82.98M54.63M157.90M
EPS:3.930.430.690.88
P/E:19.0425.9051.7719.17
PEG (5 yr expected):0.952.000.871.03
P/S:0.690.670.640.56

Genesco has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
AEO506,700341,352
ANF20,000114,704
ASNA043,915

Only Genesco has seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling Genesco, and there have not been any insiders buying Genesco during the last 30 days. Six of these seven insiders decreased their holdings by more than 10%. Genesco has an insider ownership of 3.70%.

Before going short Genesco, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, negative revenue growth, and the intensive insider-selling activity.

Source: Genesco: 7 Different Insiders Have Sold Shares During The Last 30 Days