Bullish insiders bet US$18m on Hibbett, Inc. (NASDAQ:HIBB)
In the last year, multiple insiders have substantially increased their holdings of Hibbett, Inc. (NASDAQ:HIBB) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Hibbett
Hibbett Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider James Khezrie for US$17m worth of shares, at about US$85.82 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$80.24). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing 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. We note that James Khezrie was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid US$18m for 208.35k shares. But insiders sold 76.54k shares worth US$7.2m. In total, Hibbett insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Hibbett 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.
Insiders at Hibbett Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Hibbett. In total, insider James Khezrie sold US$6.8m worth of shares in that time. On the other hand we note insiders bought US$1.3m worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.6% of Hibbett shares, worth about US$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Hibbett Insiders?
Unfortunately, there has been more insider selling of Hibbett stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent selling. 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. When we did our research, we found 3 warning signs for Hibbett (2 shouldn't be ignored!) that we believe deserve your full attention.
But note: Hibbett may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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