Have Insiders Sold American Eagle Outfitters Shares Recently?

We wouldn't blame American Eagle Outfitters, Inc. (NYSE:AEO) shareholders if they were a little worried about the fact that Jennifer Foyle, the President and Executive Creative Director of AE & Aerie recently netted about US$997k selling shares at an average price of US$18.14. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At American Eagle Outfitters

Over the last year, we can see that the biggest insider sale was by the Executive Chairman of the Board & CEO, Jay Schottenstein, for US$20m worth of shares, at about US$20.04 per share. That means that an insider was selling shares at around the current price of US$19.61. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.

Insiders in American Eagle Outfitters didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for American Eagle Outfitters

I will like American Eagle Outfitters better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 American Eagle Outfitters insiders own 7.5% of the company, worth about US$245m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At American Eagle Outfitters Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for American Eagle Outfitters 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.