Have Insiders Sold Abercrombie & Fitch Shares Recently?

Some Abercrombie & Fitch Co. (NYSE:ANF) shareholders may be a little concerned to see that the Executive VP, Gregory Henchel, recently sold a substantial US$1.5m worth of stock at a price of US$150 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

See our latest analysis for Abercrombie & Fitch

Abercrombie & Fitch Insider Transactions Over The Last Year

The insider, Kristin Scott, made the biggest insider sale in the last 12 months. That single transaction was for US$14m worth of shares at a price of US$128 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$162. 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. We note that the biggest single sale was 74% of Kristin Scott's holding.

In the last year Abercrombie & Fitch insiders didn't buy any company stock. 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

For a common shareholder, it is worth checking how many shares are held by company 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. Abercrombie & Fitch insiders own 1.8% of the company, currently worth about US$142m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Abercrombie & Fitch Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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. For example - Abercrombie & Fitch has 1 warning sign we think you should be aware of.

But note: Abercrombie & Fitch may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.