We wouldn't blame DICK'S Sporting Goods, Inc. (NYSE:DKS) shareholders if they were a little worried about the fact that Julie Lodge-Jarrett, the Senior VP and Chief People & Purpose Officer recently netted about US$1.5m selling shares at an average price of US$131. That's a big disposal, and it decreased their holding size by 38%, which is notable but not too bad.
View our latest analysis for DICK'S Sporting Goods
DICK'S Sporting Goods Insider Transactions Over The Last Year
The President, Lauren Hobart, made the biggest insider sale in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$145 each. That means that an insider was selling shares at around the current price of US$138. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$490k for 4.28k shares. On the other hand they divested 155.18k shares, for US$21m. All up, insiders sold more shares in DICK'S Sporting Goods than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. DICK'S Sporting Goods insiders own 20% of the company, currently worth about US$2.2b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About DICK'S Sporting Goods Insiders?
The insider sales have outweighed the insider buying, at DICK'S Sporting Goods, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. 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. In terms of investment risks, we've identified 1 warning sign with DICK'S Sporting Goods and understanding it should be part of your investment process.
But note: DICK'S Sporting Goods may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.