Don't Ignore The Insider Selling In Rocky Brands

We'd be surprised if Rocky Brands, Inc. (NASDAQ:RCKY) shareholders haven't noticed that the Lead Independent Director, G. Haning, recently sold US$155k worth of stock at US$31.00 per share. That sale was 20% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Rocky Brands

Notably, that recent sale by G. Haning is the biggest insider sale of Rocky Brands shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$30.43. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Rocky Brands insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and 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!

See our latest analysis for Rocky Brands

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Rocky Brands insiders own about US$8.4m worth of shares (which is 3.7% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Rocky Brands Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Rocky Brands, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Rocky Brands makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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. When we did our research, we found 3 warning signs for Rocky Brands (1 can't be ignored!) that we believe deserve your full attention.

But note: Rocky Brands may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.