Stock Analysis
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100%of this Burlington Stores, Inc. (NYSE:BURL) insider's holdings were sold in the last year
From what we can see, insiders were net sellers in Burlington Stores, Inc.'s (NYSE:BURL ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Burlington Stores
The Last 12 Months Of Insider Transactions At Burlington Stores
In the last twelve months, the biggest single sale by an insider was when the Chief Accounting Officer, Jeffrey Laub, sold US$118k worth of shares at a price of US$196 per share. That means that an insider was selling shares at slightly below the current price (US$214). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Jeffrey Laub's holding. Jeffrey Laub was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership Of Burlington Stores
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. It appears that Burlington Stores insiders own 0.3% of the company, worth about US$45m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Burlington Stores Insider Transactions Indicate?
The fact that there have been no Burlington Stores insider transactions recently certainly doesn't bother us. Still, the insider transactions at Burlington Stores in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Burlington Stores you should know about.
But note: Burlington Stores 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, but not derivative transactions.
What are the risks and opportunities for Burlington Stores?
Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States.
Rewards
Earnings are forecast to grow 21.66% per year
Risks
Significant insider selling over the past 3 months
Profit margins (2.6%) are lower than last year (4.4%)
Has a high level of debt
Further research on
Burlington Stores
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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.
About NYSE:BURL
Burlington Stores
Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States.
High growth potential with adequate balance sheet.
