David Paul Morris/Bloomberg
stock has rocketed this year, but during a spate of weakness, Executive Chairman Jay Schottenstein bought up shares of the parent company of retailer DSW Designer Shoe Warehouse.
Designer Brands (ticker: DBI) stock has more than doubled so far this year. The run-up hasn’t been uninterrupted, however. The fourth-quarter loss, reported in mid-March, was narrower than expected, but shares slipped in the days after.
Schottenstein paid $12.6 million on March 24 and March 25 for a total of 902,623 Designer Brands shares, a per share average price of $13.99. According to a form he filed with the Securities and Exchange Commission, Schottenstein bought the shares through limited-liability companies that he controls. He now owns 2.3 million Designer Brands shares through LLCs and trusts, and owns another 628,153 shares in a personal account.
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Schottenstein, who is also chairman and CEO of apparel retailer
(AEO), has served as Designer Brands’ executive chairman since March 2005; Schottenstein had also served as Designer Brands’ CEO from March 2005 to April 2009.
Schottenstein didn’t respond to a request for comment made through one of his LLCs.
UBS analyst Jay Sole raised his price target on Designer Brands stock to $16 from $15 after the fourth-quarter report but kept a Neutral rating. A potential rebound “looks mostly priced in,” Sole wrote in a report.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
