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Possible Bearish Signals With DICK'S Sporting Goods Insiders Disposing Stock
In the last year, many DICK'S Sporting Goods, Inc. (NYSE:DKS) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for DICK'S Sporting Goods
DICK'S Sporting Goods Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Lauren Hobart, for US$12m worth of shares, at about US$145 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$111. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$390k for 3.50k shares. But they sold 143.64k shares for US$20m. Over the last year we saw more insider selling of DICK'S Sporting Goods shares, than buying. 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!
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).
DICK'S Sporting Goods Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at DICK'S Sporting Goods. Not only was there no selling that we can see, but they collectively bought US$390k worth of shares. This could be interpreted as suggesting a positive outlook.
Does DICK'S Sporting Goods Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that DICK'S Sporting Goods insiders own 29% of the company, worth about US$2.8b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At DICK'S Sporting Goods Tell Us?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by some insiders , along with high insider ownership, suggest that DICK'S Sporting Goods insiders are fairly aligned, and optimistic. 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. For example - DICK'S Sporting Goods has 1 warning sign we think you should be aware of.
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.
What are the risks and opportunities for DICK'S Sporting Goods?
DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the United States.
Rewards
Trading at 38.6% below our estimate of its fair value
Earnings are forecast to grow 2.47% per year
Risks
No risks detected for DKS from our risks checks.
Further research on
DICK'S Sporting Goods
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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:DKS
DICK'S Sporting Goods
DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the United States.
Flawless balance sheet, undervalued and pays a dividend.
