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

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 |  About: Genesco Inc. (GCO), Includes: AEO, ANF, ASNA
by: Markus Aarnio

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.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Mimi Vaughn SVP April 9 3,180 No 44,845 shares 6.6%
Jonathan Caplan SVP April 4 11,790 No 53,158 shares 18.2%
Marty Dickens Director April 1 3,832 No 12,734 shares 23.1%
Roger Sisson SVP April 1 15,482 No 70,116 shares 18.1%
James Gulmi CFO March 25-28 20,000 No 132,556 shares 13.1%
Robert Dennis CEO March 17-26 55,000 No 213,385 shares 20.5%
James Estepa SVP March 19 14,934 No 57,297 shares 20.7%
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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.

Month Insider selling / shares Insider buying / shares
April 2014 34,284 0
March 2014 89,934 0
February 2014 0 0
January 2014 4,175 0
December 2013 128,394 0
November 2013 0 0
October 2013 0 0
September 2013 8,000 0
August 2013 0 0
July 2013 0 0
June 2013 85,259 0
May 2013 0 0
April 2013 5,000 0
March 2013 44,575 0
February 2013 0 0
January 2013 0 0
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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
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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 growth Low single digit
EPS $5.40-$5.55
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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.

Company GCO AEO ANF ASNA
Market Cap: 1.79B 2.16B 2.63B 2.68B
Employees: 9,200 7,000 9,000 14,000
Qtrly Rev Growth (yoy): -0.01 -0.07 -0.12 0.02
Revenue: 2.62B 3.31B 4.12B 4.80B
Gross Margin: 0.50 0.34 0.63 0.57
EBITDA: 231.92M 355.97M 448.45M 490.40M
Operating Margin: 0.06 0.07 0.05 0.07
Net Income: 92.95M 82.98M 54.63M 157.90M
EPS: 3.93 0.43 0.69 0.88
P/E: 19.04 25.90 51.77 19.17
PEG (5 yr expected): 0.95 2.00 0.87 1.03
P/S: 0.69 0.67 0.64 0.56
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Genesco has the highest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
AEO 506,700 341,352
ANF 20,000 114,704
ASNA 0 43,915
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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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.