Many Crocs, Inc. (NASDAQ:CROX) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At Crocs

The Executive VP & Brand President for Crocs, Michelle Poole, made the biggest insider sale in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$111 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$143. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 15% of Michelle Poole's holding.

In the last twelve months insiders purchased 21.40k shares for US$2.3m. On the other hand they divested 96.52k shares, for US$11m. All up, insiders sold more shares in Crocs than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Crocs Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Crocs. In total, insiders sold US$5.8m worth of shares in that time. Meanwhile Director John Replogle bought US$250k worth. We don't view these transactions as a positive sign.

Insider Ownership Of Crocs

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Crocs insiders own 3.3% of the company, worth about US$284m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Crocs Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Crocs stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Crocs is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Crocs. You'd be interested to know, that we found 2 warning signs for Crocs and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.