We note that the Shoe Carnival, Inc. (NASDAQ:SCVL) Lead Director, Kent Kleeberger, recently sold US$60k worth of stock for US$36.96 per share. It wasn’t a huge sale, but it did reduce their holding by 11%. This does not instill confidence.
Shoe Carnival Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Charles Tomm, for US$236k worth of shares, at about US$29.49 per share. That means that even when the share price was below the current price of US$37.19, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was just 38% of Charles Tomm’s stake.
Insiders in Shoe Carnival didn’t buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Shoe Carnival Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Shoe Carnival insiders own about US$204m worth of shares (which is 39% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Shoe Carnival Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. On the plus side, Shoe Carnival makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in Shoe Carnival, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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