Insiders Just Sold Shares In This Fashionable Retail Company

Insiders at Limited Brands, Inc. (NYSE:LTD) have acquired large positions in the company despite having also sold a few million dollars worth of stock.  Overall, there doesn’t seem to be much to be concerned about here: all executives and other insiders listed below who have recently engaged in transactions appear to hold significant positions in the company. Is Victoria’s Secret Dominating Women on Venus AND Men on Mars?>>

The company is presently trading at around $37.80, slightly below its 52-week high of $37.98.  The company’s margins are in line with retailers overall: its fiscal 2011 net profit margin was 8.37%, its operating margin was 13.36% and its EBITD margin was 17.46%.  Its return on average assets was 11.82% and its return on average equity was 44%.  These numbers suggest that its debt load, at $2.56 billion, is manageable.  Its total market capitalization is around $12 billion, yielding a debt-to-total capital ratio of around 21%.  Its book value per share is $4.60, giving the stock a price-to-book ratio of around 8.3.  At such a ratio, the stock is not a value stock, but the company itself seems to be financially sound.

Recent insider transactions at Limited Brands include:

  • Stuart B Burgdoerfer, who is Chief Financial Officer, exercised 163,328 options between March 31st and April 5th, at costs between $7.94 and $25.19 per option.  He subsequently sold 191,085 shares between March 31st and April 6th at market prices between $32.74 and $35.  The net proceeds of these transactions were $3,621,492.  He presently holds 161,757 shares which are worth $6,112,797.03 based on the most recent price of $37.79 per share.
  • Diane L. Neal, who is the Chief Executive Office of Bath & Body Works exercised 34,423 options at a cost of $26.25 per option on March 28th.  The total cost to her for this transaction was $903,525.  She presently holds 315,132 shares in the company which are worth $11,908,838.28 based on the most recent price of $37.79 per share.
  • Martyn R. Redgrave, who is Executive Vice President and Chief Administrative Officer, sold 50,000 shares at a market price of $33.50, for total proceeds of $1,675,000.  He presently holds 280,973 shares worth $10,617,969.67 based on the most recent price of $37.79 per share.
  • Allan R. Tessler, who is a Director, exercised 299 options at a cost of $14.80 per option on April 4th.  He presently holds 61,794 shares worth $2,335,195.26 based on the most recent price of 37.79 per share.

Other insiders at the company include:

  • Leslie H. Wexner: Chairman and Chief Executive Officer
  • Martyn R. Redgrave: Executive Vice President & Chief Administrative Officer
  • Jane L. Ramsey: Executive Vice President, Human Resources
  • Sharen Jester Turney: Chief Executive Officer and President, Victoria’s Secret Megabrand and Intimate Apparel
  • James L. Heskett: Professor at Harvard University
  • Donna A. James: Managing Director, Lardon & Associates LLC
  • David T. Kollat: Chairman, 22, Inc.
  • William R. Loomis, Jr.: Investor
  • Allan R. Tessler: Chairman of the Board, International Financial Group, Inc.
  • Abigail S. Wexner: Attorney at Law
  • Raymond Zimmerman: Chairman and Chief Executive Officer, 99cent Stuff, Inc.
  • Dennis S. Hersch: President, N.A. Property, Inc.
  • Jeffrey H. Miro: Partner, Honigman Miller Schwartz and Cohen

About the company: Limited Brands, Inc. owns and operates specialty stores throughout the United States.  The Company, through its retail stores, offers a wide range of products, including women’s apparel, women’s lingerie, beauty products and accessories, personal care, and home fragrance products.  The Company’s stores also offer products via the Internet. Competitors to Limited Brands include J.C. Penney (NYSE:JCP), Sears Holdings (NASDAQ:SHLD), Best Buy (NYSE:BBY), Nordstrom’s (NYSE:JWN), Macy’s (NYSE:M), Kohl’s (NYSE:KSS), Saks (NYSE:SKS), Dillard’s (NYSE:DDS), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Ross Stores (NASDAQ:ROST), Buckle (NYSE:BKE), Coach (NYSE:COH), Gap (NYSE:GPS), Urban Outfitters (NASDAQ:URBN) and Lulu Lemon (NASDAQ:LULU).

UPDATE: This post has been corrected to reflect the value of Mr. Burgdoerfer’s holdings.  A previous version of this post indicated that his holdings were worth approximately $61 million; the correct number is approximately $6.1 million, as emended above.

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