Buckle Inc (NYSE:BKE) President and CEO Dennis H. Nelson has sold a portion of his company stock, according to a recent SEC filing. The executive offloaded 20,453 shares at a price of $41.7323, totaling approximately $853,550. This transaction was conducted under a pre-arranged 10b5-1 trading plan set up on April 24, 2024.
The sale, dated October 7, 2024, was part of a plan that allows corporate insiders to sell shares at predetermined times to avoid accusations of insider trading. The 10b5-1 trading plan provides a structured method for executives to divest their holdings and is commonly used by company insiders to avoid concerns about transactions based on non-public information.
Following the sale, Nelson's direct and indirect holdings in Buckle Inc show a diverse structure, with ownership through trusts and family members. Notably, he retains 324,000 shares directly and another 1,863,452 shares are held indirectly by a trust. Additionally, 67,500 shares are owned indirectly by his wife, and a family trust holds 645.3 shares. Nelson's holdings also include 14,048.27 shares in a 401(k) plan, as reported by the plan administrator as of September 30, 2024.
The transaction comes at a time when investors closely watch insider trading patterns for insights into company performance and executive confidence. While the sale represents a significant amount of stock, it is worth noting that the CEO still maintains a substantial investment in the company's future.
Buckle Inc, headquartered in Kearney, Nebraska, operates as a retailer specializing in family clothing. The company's stock is publicly traded on the New York Stock Exchange under the symbol BKE.
In other recent news, The Buckle, Inc. has announced a series of financial developments. The company declared a quarterly dividend of $0.35 per share, scheduled for disbursement to shareholders of record as of October 11, 2024. In addition to this, Buckle reported robust second-quarter earnings and revenue, surpassing analyst projections. The adjusted earnings per share were reported at $0.78, beating the analyst consensus of $0.76, and revenue reached $282.4 million, exceeding expectations of $272.41 million.
However, despite these positive figures, the company observed a decrease in sales by 3.4% compared to the same quarter last year, with comparable store sales and online sales also experiencing a drop. For the month ending August 31, 2024, Buckle revealed a slight increase in comparable store net sales but an overall decrease in net sales compared to the previous year.
These recent developments underline the company's resilience amid a challenging retail environment. As always, these financial results and future performance are subject to risks and uncertainties, some of which are beyond the company's control. All these facts are based on recent press releases and analyst notes from the company.
InvestingPro Insights
Adding context to CEO Dennis H. Nelson's recent stock sale, Buckle Inc (NYSE:BKE) continues to demonstrate strong financial performance despite market fluctuations. According to InvestingPro data, the company boasts a market capitalization of $2.11 billion and an attractive P/E ratio of 10.23, suggesting the stock may be undervalued relative to earnings.
Buckle's commitment to shareholder returns is evident in its dividend policy. An InvestingPro Tip highlights that the company "pays a significant dividend to shareholders," with a current dividend yield of 9.2%. This aligns with another InvestingPro Tip noting that Buckle "has maintained dividend payments for 22 consecutive years," underscoring the company's financial stability and dedication to returning value to investors.
The company's financial health appears robust, with InvestingPro data showing a gross profit margin of 58.98% for the last twelve months as of Q2 2025. This impressive figure supports an InvestingPro Tip that points to Buckle's "impressive gross profit margins," which could provide a buffer against economic headwinds and support ongoing dividend payments.
While CEO Nelson has sold a portion of his holdings, it's worth noting that Buckle's stock has shown strong performance, with a 46.69% price total return over the past year. This positive trajectory may offer some reassurance to investors regarding the company's prospects.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Buckle's financial position and market performance.
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