Those following along with Stitch Fix, Inc. (NASDAQ:SFIX) will no doubt be intrigued by the recent purchase of shares by John Gurley, Independent Director of the company, who spent a stonking US$3.1m on stock at an average price of US$20.83. Not only is that a big swing, but it increased their holding size by 25%, which is definitely great to see.
Stitch Fix Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Matthew Cohler, for US$8.2m worth of shares, at about US$31.13 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$20.85). So it is hard to draw any strong conclusion from it.
Over the last year we saw more insider selling of Stitch Fix shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Stitch Fix insiders own about US$440m worth of shares (which is 21% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Stitch Fix Insiders?
It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Stitch Fix insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Stitch Fix, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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