Have Insiders Been Buying Sally Beauty Holdings, Inc. (NYSE:SBH) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Sally Beauty Holdings, Inc. (NYSE:SBH), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Sally Beauty Holdings
The Last 12 Months Of Insider Transactions At Sally Beauty Holdings
Over the last year, we can see that the biggest insider purchase was by President Christian Brickman for US$292k worth of shares, at about US$14.61 per share. That implies that an insider found the current (approximate) price enticing. Of course they may have changed their mind. But this suggests they are optimistic. In any event it’s generally a positive if insiders are buying shares at around the current price.
Happily, we note that in the last year insiders paid US$732k for 49.90k shares. But they sold 14.64k for US$305k. In total, Sally Beauty Holdings insiders bought more than they sold over the last year. They paid about US$14.67 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$18.02. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Sally Beauty Holdings Have Sold Stock Recently
There was substantially more insider selling, than buying, of Sally Beauty Holdings shares over the last three months. We note insiders cashed in US$305k worth of shares. Meanwhile Senior VP Aaron Alt bought US$50k worth. Generally this level of net selling might be considered a bit bearish.
Does Sally Beauty Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Sally Beauty Holdings insiders own about US$16m worth of shares. That equates to 0.8% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Sally Beauty Holdings Tell Us?
The insider sales have outweighed the insider buying, at Sally Beauty Holdings, in the last three months. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we’re happy enough to look past some selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Sally Beauty Holdings.
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.
