We'd be surprised if Hibbett Sports, Inc. (NASDAQ:HIBB) shareholders haven't noticed that the Senior Vice President of Digital Commerce, William Quinn, recently sold US$316k worth of stock at US$63.83 per share. Equally important, that sale actually reduced their holding by a full 75% which hardly makes us feel bullish about the stock.
The Last 12 Months Of Insider Transactions At Hibbett Sports
Notably, that recent sale by William Quinn is the biggest insider sale of Hibbett Sports shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$66.91). 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 75% of William Quinn's stake.
In the last twelve months insiders purchased 28.26k shares for US$262k. But they sold 4.96k shares for US$316k. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Hibbett Sports better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Hibbett Sports insiders own 1.3% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Hibbett Sports Tell Us?
An insider sold Hibbett Sports shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Hibbett Sports 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! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hibbett Sports. For example - Hibbett Sports has 3 warning signs we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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What are the risks and opportunities for Hibbett?
Trading at 79.6% below our estimate of its fair value
Earnings are forecast to grow 13.11% per year
High level of non-cash earnings
Profit margins (6.6%) are lower than last year (10.7%)
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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