Zumiez Insiders Added US$1.2m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Zumiez Inc. (NASDAQ:ZUMZ) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Zumiez
The Last 12 Months Of Insider Transactions At Zumiez
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Richard Brooks bought US$1.0m worth of shares at a price of US$13.57 per share. We do like to see buying, but this purchase was made at well below the current price of US$17.04. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 89.93k shares for US$1.2m. But they sold 40.00k shares for US$742k. In the last twelve months there was more buying than selling by Zumiez insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Zumiez Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Zumiez. In total, three insiders bought US$1.2m worth of shares in that time. But we did see Executive Officer Troy Brown sell shares worth US$742k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
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. We usually like to see fairly high levels of insider ownership. It appears that Zumiez insiders own 20% of the company, worth about US$67m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Zumiez Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Zumiez we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Zumiez and understanding it should be part of your investment process.
Of course Zumiez may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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