Some The Buckle, Inc. (NYSE:BKE) shareholders may be a little concerned to see that insider Diane Applegate recently sold a substantial US$620k worth of stock at a price of US$44.03 per share. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.
Buckle Insider Transactions Over The Last Year
The Executive VP of Stores & Director, Kari Smith, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$28.21 each. That means that an insider was selling shares at slightly below the current price (US$43.20). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 only 19% of Kari Smith's holding.
Insiders in Buckle 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!
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Insider Ownership of Buckle
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Buckle insiders own about US$869m worth of shares (which is 41% 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.
What Might The Insider Transactions At Buckle Tell Us?
Insiders sold Buckle shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Buckle makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Buckle. For example, Buckle has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
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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, but not derivative transactions.
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