Don't Ignore The Insider Selling In Abercrombie & Fitch

Some Abercrombie & Fitch Co. (NYSE:ANF) shareholders may be a little concerned to see that the Executive VP, Scott Lipesky, recently sold a substantial US$1.3m worth of stock at a price of US$147 per share. However, that sale only accounted for 7.8% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Abercrombie & Fitch

Abercrombie & Fitch Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Kristin Scott, for US$14m worth of shares, at about US$128 per share. That means that an insider was selling shares at slightly below the current price (US$138). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was 74% of Kristin Scott's holding.

Abercrombie & Fitch insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Abercrombie & Fitch

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Abercrombie & Fitch insiders own about US$132m worth of shares (which is 1.9% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Abercrombie & Fitch Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Abercrombie & Fitch makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Abercrombie & Fitch and we suggest you have a look.

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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.