This Insider Has Just Sold Shares In Burlington Stores

We wouldn't blame Burlington Stores, Inc. (NYSE:BURL) shareholders if they were a little worried about the fact that Travis Marquette, the President & COO recently netted about US$500k selling shares at an average price of US$233. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

Check out our latest analysis for Burlington Stores

The Last 12 Months Of Insider Transactions At Burlington Stores

Over the last year, we can see that the biggest insider sale was by the Group President & Chief Merchandising Officer, Jennifer Vecchio, for US$1.1m worth of shares, at about US$225 per share. That means that an insider was selling shares at slightly below the current price (US$231). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 9.2% of Jennifer Vecchio's holding.

Burlington Stores insiders didn't buy any shares over 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Burlington Stores insiders own 0.3% of the company, worth about US$48m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Burlington Stores Insider Transactions Indicate?

Insiders sold Burlington Stores shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Burlington Stores is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Burlington Stores you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.