Anyone interested in Designer Brands Inc. (NYSE:DBI) should probably be aware that the Independent Director, Harvey Sonnenberg, recently divested US$167k worth of shares in the company, at an average price of US$16.74 each. In particular, we note that the sale equated to a 84% reduction in their position size, which doesn't exactly instill confidence.
The Last 12 Months Of Insider Transactions At Designer Brands
In fact, the recent sale by Harvey Sonnenberg was the biggest sale of Designer Brands 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$17.14). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 84% of Harvey Sonnenberg's holding.
Over the last year, we note insiders sold 34453.28 shares worth US$703k. Insiders in Designer Brands didn't buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Designer Brands better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. Designer Brands insiders own about US$164m worth of shares (which is 13% of the company). 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 Designer Brands Insiders?
An insider hasn't bought Designer Brands stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Designer Brands is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Designer Brands.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.