CEO & Director of Lululemon Athletica Picks Up 4.7% More Stock

Those following along with Lululemon Athletica Inc. (NASDAQ:LULU) will no doubt be intrigued by the recent purchase of shares by Calvin McDonald, CEO & Director of the company, who spent a stonking US$1.0m on stock at an average price of US$260. While that only increased their holding size by 4.7%, it is still a big swing by our standards.

See our latest analysis for Lululemon Athletica

Lululemon Athletica Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President of Americas & Global Guest Innovation, Celeste Burgoyne, for US$2.7m worth of shares, at about US$496 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$254). So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 7.70k shares worth US$2.5m. But they sold 6.11k shares for US$3.0m. Over the last year we saw more insider selling of Lululemon Athletica shares, than buying. The average sell price was around US$496. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$254). 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!

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Insider Ownership Of Lululemon Athletica

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Lululemon Athletica insiders own 3.6% of the company, currently worth about US$1.1b based on the recent share price. 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 Lululemon Athletica Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Lululemon Athletica insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Lululemon Athletica.

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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.