Independent Director Thomas Hendrickson Just Sold A Bunch Of Shares In Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)

Anyone interested in Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) should probably be aware that the Independent Director, Thomas Hendrickson, recently divested US$176k worth of shares in the company, at an average price of US$58.52 each. The eyebrow raising move amounted to a reduction of 35% in their holding.

View our latest analysis for Ollie's Bargain Outlet Holdings

The Last 12 Months Of Insider Transactions At Ollie's Bargain Outlet Holdings

In fact, the recent sale by Thomas Hendrickson was the biggest sale of Ollie's Bargain Outlet Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$56.54. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Ollie's Bargain Outlet Holdings

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. Ollie's Bargain Outlet Holdings insiders own about US$12m worth of shares. That equates to 0.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Ollie's Bargain Outlet Holdings Insider Transactions Indicate?

An insider sold Ollie's Bargain Outlet Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Ollie's Bargain Outlet Holdings and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.