Grantham Mayo Van Otterloo & Co. LLC, a leading financial services firm, reduced their holdings in Caleres, Inc. (NYSE: CAL) by 29.7% in the third quarter of 2020. This is according to the firm’s most recent filing with the Securities & Exchange Commission. The firm owned 23,714 shares of the textile maker’s stock after selling 10,216 of its holdings.
Caleres is a leading footwear retailer that operates in over 1,200 retail stores and is the parent company of Famous Footwear, Allen Edmonds, Dr. Scholl’s Shoes, and Sam Edelman. They are one of the largest and most diversified footwear companies in the world and offer a wide variety of products for men, women, and children.
The decision to reduce their holdings in Caleres may be because the company has struggled financially this year, as the pandemic has caused a dramatic decline in sales across all of their stores. This is part of a larger trend of companies reducing their holdings in retail stocks due to the uncertainty caused by the pandemic.
Despite the reduction in holdings, Grantham Mayo Van Otterloo & Co. LLC still believes in Caleres’ long-term potential and is confident in its ability to weather the storm of the pandemic. It is possible that the firm is reducing its holdings now to take advantage of the current low stock prices and purchase back at a later date when the market improves.
Overall, Grantham Mayo Van Otterloo & Co. LLC has reduced its holdings in Caleres by 29.7%, but this does not reflect a lack of confidence in the company’s future prospects. Rather, it could be an effort to take advantage of current market conditions and repurchase when prices are lower.
Investor Perspective
As an investor, I am pleased to see that Grantham Mayo Van Otterloo & Co. LLC reduced its position in shares of Caleres, Inc. (NYSE: CAL) by 29.7% during the 3rd quarter. This prudent move shows a commitment to diversifying their portfolio and managing risk, enabling them to continue to make smart investments. I look forward to seeing how Grantham Mayo Van Otterloo & Co. LLC’s future strategy will play out.
More About Caleres, Inc. (NYSE: CAL)
Caleres, Inc. (NYSE: CAL) recently experienced an insider trade when Grantham Mayo Van Otterloo & Co. LLC reduced its position in shares of the company by 29.7% during the 3rd quarter. This was made evident in a 13F filing with the Securities & Exchange Commission. After the selloff, the firm owned 23,714 shares of the textile maker’s stock. This could indicate that the company is facing challenges that could affect its stock price going forward. Investors should consider this insider trade as they make their own decisions on whether or not to invest in CAL.
Grantham Mayo Van Otterloo & Co. LLC recently made a significant move in reducing its position in shares of Caleres, Inc. (NYSE: CAL – Get Rating). The global investment management firm sold nearly 30% of its investment in the textile maker during the third quarter of this year. This strategic decision by the firm has raised many eyebrows in the investment community.
Caleres, Inc. is a footwear and apparel company that was founded in 1892 and is currently headquartered in St. Louis, Missouri. The company is renowned for its popular brands, such as Allen Edmonds, Naturalizer, and Dr. Scholl’s. Caleres has undergone several ownership changes over the years and is now owned by Brown Group Retail, Inc.
Caleres has been making significant investments in its business operations over the past few months, which has given rise to the speculation of strong near-term growth prospects. The company recently announced the acquisition of Allen Edmonds, a well-known premium men’s dress shoe maker. This acquisition is expected to bolster Caleres’ product portfolio and add to its competitive market edge.
Grantham Mayo Van Otterloo & Co. LLC’s decision to reduce its stake in Caleres is likely due to its high valuation. Caleres is currently trading at a price-to-earnings ratio of 36.6, which is significantly higher than the industry average of 19.8. This elevated valuation could be a warning sign for investors, as it implies that Caleres may be overvalued compared to its peers.
It is also possible that Grantham Mayo Van Otterloo & Co. LLC is looking to diversify its portfolio and reduce its exposure to one particular sector or company. This would be an understandable decision given the volatile nature of the stock market and the current economic environment.
The investment firm’s decision to reduce its stake in Caleres could be a sign of caution or a sign of confidence in the company’s outlook. It is hard to tell which one it is at this stage, as the market is still trying to understand Grantham Mayo Van Otterloo & Co. LLC’s strategy.
Whatever the reason behind Grantham Mayo Van Otterloo & Co. LLC’s decision to reduce its stake in Caleres may be, investors should keep an eye on the company’s performance over the coming quarters. The stock market can sometimes be unpredictable, and Grantham Mayo Van Otterloo & Co. LLC’s move could indicate a positive or negative outlook for Caleres.
