Abercrombie & Fitch Independent Director Sarah Gallagher Sells 83% Of Holding

We wouldn't blame Abercrombie & Fitch Co. (NYSE:ANF) shareholders if they were a little worried about the fact that Sarah Gallagher, the Independent Director recently netted about US$983k selling shares at an average price of US$74.36. Probably the most concerning element of the whole transaction is that the disposal amounted to 83% of their entire holding.

View our latest analysis for Abercrombie & Fitch

Abercrombie & Fitch Insider Transactions Over The Last Year

The President of Global Brands, Kristin Scott, made the biggest insider sale in the last 12 months. That single transaction was for US$7.3m worth of shares at a price of US$52.66 each. That means that an insider was selling shares at slightly below the current price (US$77.73). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. It is worth noting that this sale was 52% of Kristin Scott's holding.

Insiders in Abercrombie & Fitch didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Abercrombie & Fitch Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Abercrombie & Fitch insiders own 2.9% of the company, worth about US$112m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Abercrombie & Fitch Tell Us?

Insiders haven't bought Abercrombie & Fitch stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Abercrombie & Fitch is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Abercrombie & Fitch. You'd be interested to know, that we found 2 warning signs for Abercrombie & Fitch and we suggest you have a look.

Of course Abercrombie & Fitch 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 of direct interests only, but not derivative transactions or indirect interests.

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.