Anyone interested in Movado Group, Inc. (NYSE:MOV) should probably be aware that the Lead Independent Director, Alan Howard, recently divested US$116k worth of shares in the company, at an average price of US$27.84 each. However, the silver lining is that the sale only reduced their total holding by 7.5%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Movado Group
Notably, that recent sale by Alan Howard is the biggest insider sale of Movado Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$28.04. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 7.5% of Alan Howard's stake.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Movado Group
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. Movado Group insiders own about US$98m worth of shares. That equates to 15% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Movado Group Insiders?
The insider sales have outweighed the insider buying, at Movado Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Movado Group (of which 2 are a bit concerning!) you should know about.
Of course Movado Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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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