Co-Founder Robert Greenberg Sold A Bunch Of Shares In Skechers U.S.A

We wouldn't blame Skechers U.S.A., Inc. (NYSE:SKX) shareholders if they were a little worried about the fact that Robert Greenberg, the Co-Founder recently netted about US$2.5m selling shares at an average price of US$60.76. That sale reduced their total holding by 44% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Skechers U.S.A

Skechers U.S.A Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Michael Greenberg, sold US$5.5m worth of shares at a price of US$60.27 per share. That means that an insider was selling shares at around the current price of US$57.76. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Skechers U.S.A insiders didn't buy any shares 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!

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

Does Skechers U.S.A Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Skechers U.S.A insiders own 3.8% of the company, currently worth about US$333m 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.

What Might The Insider Transactions At Skechers U.S.A Tell Us?

Insiders haven't bought Skechers U.S.A stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Skechers U.S.A makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Skechers U.S.A that deserve your attention before buying any shares.

But note: Skechers U.S.A 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.