Some Skechers U.S.A., Inc. (NYSE:SKX) shareholders may be a little concerned to see that the Executive Vice President of Product Development, Mark Nason, recently sold a substantial US$618k worth of stock at a price of US$40.69 per share. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.

See our latest analysis for Skechers U.S.A

Skechers U.S.A Insider Transactions Over The Last Year

The Co-Founder Michael Greenberg made the biggest insider purchase in the last 12 months. That single transaction was for US$3.9m worth of shares at a price of US$38.23 each. So it's clear an insider wanted to buy, at around the current price, which is US$39.49. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Michael Greenberg was the only individual insider to buy shares in the last twelve months.

Over the last year we saw more insider selling of Skechers U.S.A shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Skechers U.S.A

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Skechers U.S.A insiders own 5.1% of the company, currently worth about US$312m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Skechers U.S.A Insider Transactions Indicate?

Insiders haven't bought Skechers U.S.A stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Skechers U.S.A makes money, and is growing profits. 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. 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. Our analysis shows 2 warning signs for Skechers U.S.A (1 is a bit concerning!) and we strongly recommend you look at these before investing.

Of course Skechers U.S.A may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.