Looking at Shoe Carnival, Inc.'s (NASDAQ:SCVL ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Shoe Carnival Insider Transactions Over The Last Year
The Independent Director Charles Tomm made the biggest insider purchase in the last 12 months. That single transaction was for US$108k worth of shares at a price of US$26.90 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.99). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Charles Tomm was the only individual insider to buy during the last year.
Charles Tomm purchased 6.00k shares over the year. The average price per share was US$27.03. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Shoe Carnival 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 Shoe Carnival Have Sold Stock Recently
We have seen a bit of insider selling at Shoe Carnival, over the last three months. Independent Director Andrea Guthrie sold just US$30k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
Insider Ownership Of Shoe Carnival
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Shoe Carnival insiders own 39% of the company, worth about US$255m. 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 Do The Shoe Carnival Insider Transactions Indicate?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Shoe Carnival insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shoe Carnival. While conducting our analysis, we found that Shoe Carnival has 1 warning sign and it would be unwise to ignore it.
But note: Shoe Carnival 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.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here