Independent Director Of Steven Madden Sold 66% Of Their Shares

Anyone interested in Steven Madden, Ltd. (NASDAQ:SHOO) should probably be aware that the Independent Director, Maria Kumar, recently divested US$380k worth of shares in the company, at an average price of US$43.99 each. Equally important, that sale actually reduced their holding by a full 66% which hardly makes us feel bullish about the stock.

View our latest analysis for Steven Madden

The Last 12 Months Of Insider Transactions At Steven Madden

In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Edward Rosenfeld, sold US$2.0m worth of shares at a price of US$41.49 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$43.11. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 5.0% of Edward Rosenfeld's holding.

Insiders in Steven Madden didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Steven Madden better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Steven Madden

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Steven Madden insiders own about US$66m worth of shares. That equates to 2.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Steven Madden Insiders?

Insiders haven't bought Steven Madden stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Steven Madden is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Steven Madden and we suggest you have a look.

But note: Steven Madden 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.