Don't Ignore The Insider Selling In Shoe Carnival
Shoe Carnival, Inc. SCVL | 35.83 35.83 | +2.28% 0.00% Pre |
We wouldn't blame Shoe Carnival, Inc. (NASDAQ:SCVL) shareholders if they were a little worried about the fact that Carl Scibetta, the Senior Executive VP & Chief Merchandising Officer recently netted about US$532k selling shares at an average price of US$35.45. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.
Check out our latest analysis for Shoe Carnival
The Last 12 Months Of Insider Transactions At Shoe Carnival
The Executive Chairman of the Board J. Weaver made the biggest insider purchase in the last 12 months. That single transaction was for US$5.2m worth of shares at a price of US$25.16 each. We do like to see buying, but this purchase was made at well below the current price of US$36.64. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Shoe Carnival insiders own 36% of the company, worth about US$346m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Shoe Carnival Tell Us?
An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're happy to look past recent trading. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Shoe Carnival.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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.