Insiders at Lands' End, Inc. (NASDAQ:LE) must be relieved they sold stock as market valuation descends to US$585m

By
Simply Wall St
Published
January 21, 2022
NasdaqCM:LE
Source: Shutterstock

Over the past year, insiders sold US$202k worth of Lands' End, Inc. (NASDAQ:LE) stock at an average price of US$24.59 per share allowing them to get the most out of their money. The company's market valuation decreased by US$57m after the stock price dropped 8.9% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Lands' End

The Last 12 Months Of Insider Transactions At Lands' End

In the last twelve months, the biggest single sale by an insider was when the insider, Sarah Rasmusen, sold US$202k worth of shares at a price of US$24.59 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$17.75. So it may not tell us anything about how insiders feel about the current share price. Sarah Rasmusen was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqCM:LE Insider Trading Volume January 21st 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Lands' End

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Lands' End insiders own 60% of the company, worth about US$351m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Lands' End Insider Transactions Indicate?

The fact that there have been no Lands' End insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Lands' End insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lands' End. Case in point: We've spotted 3 warning signs for Lands' End you should be aware of, and 2 of them are significant.

Of course Lands' End 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.