CEO & Brand President of Coach Of Tapestry Sold 26% Of Their Shares

We wouldn't blame Tapestry, Inc. (NYSE:TPR) shareholders if they were a little worried about the fact that Todd Kahn, the CEO & Brand President of Coach recently netted about US$3.3m selling shares at an average price of US$81.40. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Tapestry

In fact, the recent sale by CEO & Brand President of Coach Todd Kahn was not their only sale of Tapestry shares this year. They previously made an even bigger sale of -US$3.6m worth of shares at a price of US$85.41 per share. That means that an insider was selling shares at around the current price of US$83.60. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Tapestry didn't buy any shares in 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!

See our latest analysis for Tapestry

I will like Tapestry better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Tapestry insiders own 0.4% of the company, worth about US$67m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Tapestry Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Tapestry is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. For example - Tapestry has 3 warning signs we think you should be aware of.

Of course Tapestry 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 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.