Stock Analysis

Lauren Hobart Is The President of DICK'S Sporting Goods, Inc. (NYSE:DKS) And They Just Sold 26% Of Their Shares

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Some DICK'S Sporting Goods, Inc. (NYSE:DKS) shareholders may be a little concerned to see that the President, Lauren Hobart, recently sold a substantial US$12m worth of stock at a price of US$145 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for DICK'S Sporting Goods

DICK'S Sporting Goods Insider Transactions Over The Last Year

In fact, the recent sale by Lauren Hobart was the biggest sale of DICK'S Sporting Goods shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$147. 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. It is worth noting that this sale was only 26% of Lauren Hobart's holding.

All up, insiders sold more shares in DICK'S Sporting Goods than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:DKS Insider Trading Volume March 17th 2023

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Insider Ownership Of DICK'S Sporting Goods

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that DICK'S Sporting Goods insiders own 30% of the company, worth about US$3.7b. 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 DICK'S Sporting Goods Insiders?

Insiders haven't bought DICK'S Sporting Goods stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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 DICK'S Sporting Goods. Every company has risks, and we've spotted 3 warning signs for DICK'S Sporting Goods (of which 1 is a bit unpleasant!) 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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