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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Crown Crafts, Inc. (NASDAQ:CRWS), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
See our latest analysis for Crown Crafts
Crown Crafts Insider Transactions Over The Last Year
The CEO & President of Crown Crafts Infant Products Inc, Nanci Freeman, made the biggest insider sale in the last 12 months. That single transaction was for US$120k worth of shares at a price of US$6.06 each. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$4.46. So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders netted US$142k for 23500 shares sold. Insiders in Crown Crafts didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership of Crown Crafts
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. 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 14% of Crown Crafts shares, worth about US$6.5m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Crown Crafts Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. Our analysis of Crown Crafts insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Of course, the future is what matters most. So if you are interested in Crown Crafts, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.