Chief Information Officer Of Gildan Activewear Sold 89% Of Their Shares

We wouldn't blame Gildan Activewear Inc. (TSE:GIL) shareholders if they were a little worried about the fact that Jason DeHaan, the Chief Information Officer recently netted about CA$1.0m selling shares at an average price of CA$69.62. That diminished their holding by a very significant 89%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Gildan Activewear

The Last 12 Months Of Insider Transactions At Gildan Activewear

The President of Manufacturing, Benito Masi, made the biggest insider sale in the last 12 months. That single transaction was for CA$5.5m worth of shares at a price of CA$45.41 each. That means that even when the share price was below the current price of CA$68.20, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 34% of Benito Masi's stake.

Happily, we note that in the last year insiders paid CA$1.2m for 22.88k shares. On the other hand they divested 197.10k shares, for CA$9.6m. In total, Gildan Activewear insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Gildan Activewear insiders own 1.0% of the company, worth about CA$106m. 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 Gildan Activewear Insiders?

Unfortunately, there has been more insider selling of Gildan Activewear stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Gildan Activewear you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.