We wouldn't blame Arhaus, Inc. (NASDAQ:ARHS) shareholders if they were a little worried about the fact that Kathy Veltri, the Chief Retail Officer recently netted about US$699k selling shares at an average price of US$9.32. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.
View our latest analysis for Arhaus
Arhaus Insider Transactions Over The Last Year
In fact, the recent sale by Kathy Veltri was the biggest sale of Arhaus shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$9.94). 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. 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. We note that the biggest single sale was only 17%of Kathy Veltri's holding.
Over the last year, we can see that insiders have bought 22.11k shares worth US$192k. But they sold 186.73k shares for US$1.7m. All up, insiders sold more shares in Arhaus 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Arhaus better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Arhaus Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Arhaus insiders own 34% of the company, worth about US$451m. 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 Does This Data Suggest About Arhaus Insiders?
Insiders haven't bought Arhaus stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Arhaus makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 2 warning signs for Arhaus (1 can't be ignored) you should be aware of.
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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