Have Levi Strauss & Co. (NYSE:LEVI) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
October 10, 2020
NYSE:LEVI

Anyone interested in Levi Strauss & Co. (NYSE:LEVI) should probably be aware that a company insider, Marc Rosen, recently divested US$325k worth of shares in the company, at an average price of US$15.00 each. That sale was 23% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Levi Strauss

Levi Strauss Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP and President of Levi Strauss Asia, David Love, for US$3.5m worth of shares, at about US$17.23 per share. So what is clear is that an insider saw fit to sell at around the current price of US$15.21. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Levi Strauss insiders sold more than they bought over the last year. 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!

insider-trading-volume
NYSE:LEVI Insider Trading Volume October 10th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Levi Strauss

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Levi Strauss insiders own 69% of the company, currently worth about US$4.2b based on the recent share price. 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 Do The Levi Strauss Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Levi Strauss stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. When we did our research, we found 2 warning signs for Levi Strauss (1 doesn't sit too well with us!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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This article by Simply Wall St is general in nature. 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.
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