We’d be surprised if Skechers U.S.A., Inc. (NYSE:SKX) shareholders haven’t noticed that the Co-Founder, Michael Greenberg, recently sold US$444k worth of stock at US$42.29 per share. On the bright side, that sale was only 2.4% of their holding, so we doubt it’s very meaningful, on its own.
See our latest analysis for Skechers U.S.A
Skechers U.S.A Insider Transactions Over The Last Year
In fact, the recent sale by Co-Founder Michael Greenberg was not their only trade of Skechers U.S.A shares this year. Earlier in the year, they spent US$3.9m to buy shares at US$38.23 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$44.59. 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.
Over the last year we saw more insider selling of Skechers U.S.A shares, than buying. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Skechers U.S.A Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Skechers U.S.A insiders own 5.0% of the company, currently worth about US$343m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Skechers U.S.A Tell Us?
Insiders sold Skechers U.S.A shares recently, but they didn’t buy any. And our longer term analysis of insider transactions didn’t bring confidence, either. On the plus side, Skechers U.S.A makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. 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. Be aware that Skechers U.S.A is showing 2 warning signs in our investment analysis, and 1 of those can’t be ignored…
But note: Skechers U.S.A 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.
Valuation is complex, but we’re helping make it simple.
Find out whether Skechers U.S.A is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
