Have Insiders Been Buying Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. 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 Sportsman’s Warehouse Holdings
Sportsman’s Warehouse Holdings Insider Transactions Over The Last Year
Director Richard McBee made the biggest insider purchase in the last 12 months. That single transaction was for US$90k worth of shares at a price of US$4.52 each. We do like to see buying, but this purchase was at a lower price. The insider buying may not tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 32.12k shares worth US$144k. In total, Sportsman’s Warehouse Holdings insiders bought more than they sold over the last year. They paid about US$4.47 on average. We don’t deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today’s levels. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Sportsman’s Warehouse Holdings 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.
Sportsman’s Warehouse Holdings Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Sportsman’s Warehouse Holdings. Overall, 3 insiders shelled out US$139k for shares in the company — and none sold. This makes one think the business has some good points.
Does Sportsman’s Warehouse Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Based on our data, Sportsman’s Warehouse Holdings insiders have about 1.9% of the stock, worth approximately US$4.8m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Sportsman’s Warehouse Holdings Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Sportsman’s Warehouse Holdings insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Sportsman’s Warehouse Holdings, you should check out this free report on analyst forecasts for the company.
Of course Sportsman’s Warehouse Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 editorial-team@simplywallst.com. 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. On rare occasion, data errors may occur. Thank you for reading.
