Children's Place President Acquires 23% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the The Children's Place, Inc. (NASDAQ:PLCE) President, Muhammad Umair, recently bought US$50k worth of stock, for US$7.00 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 23%.

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The Last 12 Months Of Insider Transactions At Children's Place

In fact, the recent purchase by Muhammad Umair was the biggest purchase of Children's Place shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$7.11 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Children's Place share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Muhammad Umair.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Children's Place

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Children's Place Boast High Insider Ownership?

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. Our data suggests Children's Place insiders own 1.7% of the company, worth about US$2.6m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Children's Place Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Children's Place insiders are expecting a bright future. 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. For instance, we've identified 5 warning signs for Children's Place (4 are concerning) you should be aware of.

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 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.