Gildan Activewear Insiders Sell US$21m Of Stock, Possibly Signalling Caution

The fact that multiple Gildan Activewear Inc. (TSE:GIL) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Gildan Activewear

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief Administrative Officer, Rhodri Harries, sold CA$7.8m worth of shares at a price of CA$78.08 per share. So we know that an insider sold shares at around the present share price of CA$77.75. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 12.54k shares for CA$828k. But insiders sold 291.64k shares worth CA$21m. Over the last year we saw more insider selling of Gildan Activewear shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Gildan Activewear

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Insiders At Gildan Activewear Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Gildan Activewear. Independent Director Michener Chandlee shelled out CA$41k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Gildan Activewear

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. Insiders own 1.2% of Gildan Activewear shares, worth about CA$132m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Gildan Activewear Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Gildan Activewear insider transactions. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Gildan Activewear.

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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.