This Insider Has Just Sold Shares In Capri Holdings Limited (NYSE:CPRI)

Simply Wall St
June 02, 2021
Source: Shutterstock

We'd be surprised if Capri Holdings Limited (NYSE:CPRI) shareholders haven't noticed that the Senior VP of Global Operations and Head of Diversity & Inclusion, Daniel Purefoy, recently sold US$201k worth of stock at US$56.97 per share. The eyebrow raising move amounted to a reduction of 20% in their holding.

See our latest analysis for Capri Holdings

Capri Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Daniel Purefoy is the biggest insider sale of Capri Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$54.52. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Daniel Purefoy sold a total of 7.11k shares over the year at an average price of US$42.38. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:CPRI Insider Trading Volume June 3rd 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Capri Holdings Boast High Insider Ownership?

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. Capri Holdings insiders own 2.3% of the company, currently worth about US$186m 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 Does This Data Suggest About Capri Holdings Insiders?

An insider sold Capri Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Capri Holdings. To help with this, we've discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Capri Holdings.

But note: Capri Holdings 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, but not derivative transactions.

If you’re looking to trade Capri Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.