Don't Ignore The Insider Selling In Acushnet Holdings

Some Acushnet Holdings Corp. (NYSE:GOLF) shareholders may be a little concerned to see that the President of FootJoy, Christopher Lindner, recently sold a substantial US$892k worth of stock at a price of US$71.35 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

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Acushnet Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, David Maher, sold US$1.9m worth of shares at a price of US$69.35 per share. That means that even when the share price was below the current price of US$72.08, an insider wanted to cash in some shares. 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 3.3% of David Maher's holding.

In the last year Acushnet Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Acushnet Holdings

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Acushnet Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Acushnet Holdings insiders own 2.7% of the company, worth about US$112m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Acushnet Holdings Insiders?

Insiders haven't bought Acushnet Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Acushnet Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Acushnet Holdings has 3 warning signs (and 1 which is concerning) we think you should know about.

But note: Acushnet 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 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.