We wouldn't blame Skechers U.S.A., Inc. (NYSE:SKX) shareholders if they were a little worried about the fact that Michael Greenberg, the Co-Founder recently netted about US$6.1m selling shares at an average price of US$59.01. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.
See our latest analysis for Skechers U.S.A
Skechers U.S.A Insider Transactions Over The Last Year
In fact, the recent sale by Michael Greenberg was the biggest sale of Skechers U.S.A shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$59.15, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 23% of Michael Greenberg's holding.
All up, insiders sold more shares in Skechers U.S.A than they bought, over the last year. 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!
I will like Skechers U.S.A better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Skechers U.S.A
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Skechers U.S.A insiders own 4.2% of the company, currently worth about US$387m 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?
Unfortunately, there has been more insider selling of Skechers U.S.A stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Skechers U.S.A.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.