DSW: 3 Different Insiders Have Purchased Shares This Month

Jun. 8.14 | About: DSW Inc. (DSW)

Summary

3 insiders purchased DSW stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

2 of these 3 insiders increased their holdings by more than 10%.

DSW Inc. (NYSE:DSW) operates as a branded footwear and accessories retailer in the United States.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Mary Meixelsperger SVP June 2-4 4,000 4,000 shares from 0 to 4,000
Deborah Ferree Vice Chairman June 4 20,000 90,533 shares +28.4%
William Jordan EVP June 3 1,000 28,928 shares +3.6%
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There have been 25,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
June 2014 25,000 0
May 2014 0 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 39,333
November 2013 0 28,249
October 2013 0 182,584
September 2013 0 220,397
August 2013 0 82,260
July 2013 0 44,899
June 2013 0 55,000
May 2013 0 0
April 2013 0 25,304
March 2013 0 3,442
February 2013 0 0
January 2013 0 0
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There have been 25,000 shares purchased and there have been 681,468 shares sold by insiders since January 2013. The month of June 2014 has seen all of the insider buying.

Financials

DSW reported the fiscal 2014 first-quarter, which ended May 3, financial results on May 28 with the following highlights:

Revenue $599 million
Net income $38.6 million
Cash $312.8 million
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The stock plunged after these results and the three insiders purchased their shares after the plunge.

Outlook

DSW's fiscal 2014 guidance is as follows:

Adjusted sales growth Low single digit
Comparable sales decline Low single digit
Adjusted EPS $1.45-$1.60
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Competition

DSW's competitors include Shoe Carnival (NASDAQ:SCVL) and Foot Locker (NYSE:FL). Here is a table comparing these companies.

Company DSW SCVL FL
Market Cap: 2.49B 381.02M 7.32B
Employees: 11,000 2,200 14,267
Qtrly Rev Growth (yoy): -0.00 0.02 0.14
Revenue: 2.37B 888.27M 6.74B
Gross Margin: 0.39 0.29 0.44
EBITDA: 327.69M 62.53M 847.25M
Operating Margin: 0.11 0.05 0.11
Net Income: 155.43M 26.03M 453.00M
EPS: 1.69 1.30 3.04
P/E: 15.98 14.64 16.31
PEG (5 yr expected): 1.67 0.98 1.42
P/S: 1.02 0.42 1.09
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DSW has the second-highest gross margin among these three companies.

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

Company Insider buying / shares Insider selling / shares
SCVL 0 0
FL 0 172,317
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Only DSW has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying DSW, and there have not been any insiders selling DSW during the last 30 days. Two of these three insiders increased their holdings by more than 10%. DSW has an insider ownership of 1.44%.

The three insiders purchased their shares at prices ranging from $25.18 to $25.94. I believe DSW could be a good pick below $25.94 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DSW over 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.