Yahoo Finance Bullish insiders at Hibbett, Inc. (NASDAQ:HIBB) loaded up on US$19m of stock earlier this year
Multiple insiders secured a larger position in Hibbett, Inc. (NASDAQ:HIBB) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Hibbett
Hibbett Insider Transactions Over The Last Year
The insider James Khezrie made the biggest insider purchase in the last 12 months. That single transaction was for US$17m worth of shares at a price of US$85.82 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$44.34). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably James Khezrie was also the biggest seller.
In the last twelve months insiders purchased 217.45k shares for US$19m. But insiders sold 69.90k shares worth US$6.8m. In the last twelve months there was more buying than selling by Hibbett 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Hibbett
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Hibbett insiders own 1.9% of the company, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Hibbett Insiders?
It doesn't really mean much that no insider has traded Hibbett shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Hibbett and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Hibbett you should be aware of, and 2 of them are significant.
Of course Hibbett 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.
