Insiders seem to have made the most of their holdings by selling US$670k worth of Smith & Wesson Brands, Inc. (NASDAQ:SWBI) stock at an average sell price of US$25.97 during the past year. The company's market worth decreased by US$54m over the past week after the stock price dropped 8.0%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Smith & Wesson Brands
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Barry Monheit, sold US$277k worth of shares at a price of US$27.65 per share. 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$13.57). So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 3.71k shares worth US$61k. But they sold 25.78k shares for US$670k. Over the last year we saw more insider selling of Smith & Wesson Brands shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Are Smith & Wesson Brands Insiders Buying Or Selling?
There was only a small bit of insider buying, worth US$5.0k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Smith & Wesson Brands insiders own about US$10m worth of shares. That equates to 1.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Smith & Wesson Brands Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. We don't take much encouragement from the transactions by Smith & Wesson Brands insiders. But we do like the fact that insiders own a fair chunk of the company. While we like knowing 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. At Simply Wall St, we've found that Smith & Wesson Brands has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
Of course Smith & Wesson Brands may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.