Shareholders Can't Ignore US$20m Of Sales By Deckers Outdoor Insiders

Last week, Deckers Outdoor Corporation's (NYSE:DECK) stock jumped 11%, but insiders who sold US$20m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$166, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Deckers Outdoor Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director, David Powers, sold US$6.1m worth of shares at a price of US$193 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$106. So it is hard to draw any strong conclusion from it.

In total, Deckers Outdoor 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Deckers Outdoor

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Insiders At Deckers Outdoor Have Bought Stock Recently

Over the last quarter, Deckers Outdoor insiders have spent a meaningful amount on shares. We can see that Independent Chair of Board Cynthia Davis paid US$200k for shares in the company. No-one sold. That shows some optimism about the company's future.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Deckers Outdoor insiders own about US$94m worth of shares. That equates to 0.6% 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.

What Might The Insider Transactions At Deckers Outdoor Tell Us?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Deckers Outdoor insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. Of course, the future is what matters most. So if you are interested in Deckers Outdoor, you should check out this free report on analyst forecasts for the company.

But note: Deckers Outdoor 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.