Don't Ignore The Insider Selling In Rocky Brands

Anyone interested in Rocky Brands, Inc. (NASDAQ:RCKY) should probably be aware that the Independent Director, Robert Moore, recently divested US$104k worth of shares in the company, at an average price of US$20.75 each. That sale was 16% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Rocky Brands

Rocky Brands Insider Transactions Over The Last Year

The Assistant Secretary & Independent Director, Curtis Loveland, made the biggest insider sale in the last 12 months. That single transaction was for US$346k worth of shares at a price of US$36.50 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$21.78). So it may not shed much light on insider confidence at current levels.

In total, Rocky Brands 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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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. We usually like to see fairly high levels of insider ownership. Our data indicates that Rocky Brands insiders own about US$6.1m worth of shares (which is 3.6% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Rocky Brands Insiders?

Unfortunately, there has been more insider selling of Rocky Brands stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Rocky Brands is growing earnings. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! 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. Every company has risks, and we've spotted 3 warning signs for Rocky Brands (of which 2 are a bit unpleasant!) you should know about.

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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.