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After a 6.1% dip, insiders are undoubtedly glad they sold Guess', Inc. (NYSE:GES)

Simply Wall St ·  Jun 30, 2022 07:50

Insiders seem to have made the most of their holdings by selling US$203k worth of Guess', Inc. (NYSE:GES) stock at an average sell price of US$24.60 during the past year. The company's market worth decreased by US$66m over the past week after the stock price dropped 6.1%, although insiders were able to minimize their losses

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.

See our latest analysis for Guess'

Guess' Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Kathryn Anderson, sold US$203k worth of shares at a price of US$24.60 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$17.23. So it is hard to draw any strong conclusion from it. Kathryn Anderson was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:GES Insider Trading Volume June 30th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Guess' Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Guess' insiders own about US$449m worth of shares (which is 44% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Guess' Tell Us?

It doesn't really mean much that no insider has traded Guess' shares in the last quarter. While we feel good about high insider ownership of Guess', we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Guess' you should be aware of.

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, but not derivative transactions.

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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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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