DICK'S Sporting Goods Insiders Sell US$13m Of Stock, Possibly Signalling Caution

Over the past year, many DICK'S Sporting Goods, Inc. (NYSE:DKS) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for DICK'S Sporting Goods

The Last 12 Months Of Insider Transactions At DICK'S Sporting Goods

Over the last year, we can see that the biggest insider sale was by the Executive VP & CFO, Navdeep Gupta, for US$2.9m worth of shares, at about US$222 per share. So what is clear is that an insider saw fit to sell at around the current price of US$210. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

All up, insiders sold more shares in DICK'S Sporting Goods than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like DICK'S Sporting Goods better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of DICK'S Sporting Goods

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that DICK'S Sporting Goods insiders own 30% of the company, worth about US$5.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The DICK'S Sporting Goods Insider Transactions Indicate?

It doesn't really mean much that no insider has traded DICK'S Sporting Goods shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of DICK'S Sporting Goods insider transactions don't fill us with confidence. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course DICK'S Sporting Goods may not be the best stock to buy. So you may wish to see this free collection of high quality 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.