Tapestry CEO & Brand President of Coach Todd Kahn Sells 25% Of Holding

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$3.0m selling shares at an average price of US$103. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

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Tapestry Insider Transactions Over The Last Year

Notably, that recent sale by CEO & Brand President of Coach Todd Kahn was not the only time they sold Tapestry shares this year. Earlier in the year, they fetched US$85.41 per share in a -US$3.6m sale. That means that an insider was selling shares at slightly below the current price (US$105). 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. 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. We note that the biggest single sale was only 21% of Todd Kahn's holding.

In the last year Tapestry insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Tapestry

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Does Tapestry Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of Tapestry shares, worth about US$78m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Tapestry Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of 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. While conducting our analysis, we found that Tapestry has 4 warning signs and it would be unwise to ignore these.

But note: Tapestry 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.