Some RH (NYSE:RH) shareholders may be a little concerned to see that the Lead Independent Director, Mark Demilio, recently sold a substantial US$616k worth of stock at a price of US$308 per share.    However, that sale only accounted for 5.7% of their holding, so arguably it doesn't say much about their conviction.    

The Last 12 Months Of Insider Transactions At RH

The Independent Director, Carlos Alberini, made the biggest insider sale in the last 12 months. That single transaction was for US$7.8m worth of shares at a price of US$315 each.   We generally don't like to see insider selling, but the lower the sale price, the more it concerns us.  The good news is that this large sale was at well above current price of US$278.  So it is hard to draw any strong conclusion from it.  

Insiders in RH didn't buy any shares in 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!

NYSE:RH Insider Trading Volume April 7th 2024

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

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.   RH insiders own about US$955m worth of shares (which is 19% 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.  

So What Does This Data Suggest About RH Insiders?

An insider  sold RH shares recently, but they didn't buy any.     Looking to the last twelve months, our data doesn't show any insider buying.    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.    Our analysis shows 4 warning signs for RH (2 are a bit concerning!) and we strongly recommend you look at these before investing.  

But note: RH 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.