Did PVH Corp. (NYSE:PVH) Insiders Sell Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell PVH Corp. (NYSE:PVH), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
View our latest analysis for PVH
PVH Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Presiding Director Henry Nasella sold US$3.1m worth of shares at a price of US$155 per share. That is hardly a positive sign, even though it took place above the latest price (US$109). So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 11.05k shares for US$1.1m. But they sold 32.76k for US$5.1m. In total, PVH insiders sold more than they bought over the last year. They sold for an average price of about US$156. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (US$109), so it probably doesn’t tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
PVH is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
PVH Insiders Bought Stock Recently
It’s good to see that PVH insiders have made notable investments in the company’s shares. In total, insiders bought US$1.1m worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership of PVH
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. Insiders own 0.5% of PVH shares, worth about US$40m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The PVH Insider Transactions Indicate?
It is good to see recent purchasing. But we can’t say the same for the transactions over the last 12 months. While recent transactions indicate confidence in PVH, insiders don’t own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
