Whilst it may not be a huge deal, we thought it was good to see that the Sally Beauty Holdings, Inc. (NYSE:SBH) Director, Edward Rabin, recently bought US$93k worth of stock, for US$13.25 per share. That might not be a big purchase but it only increased their holding by 6.1%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Sally Beauty Holdings
The President of Beauty Systems Group LLC, Mark Spinks, made the biggest insider sale in the last 12 months. That single transaction was for US$238k worth of shares at a price of US$20.60 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$13.32. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 59600 shares for US$919k. On the other hand they divested 14638 shares, for US$305k. In the last twelve months there was more buying than selling by Sally Beauty Holdings insiders. Their average price was about US$15.42. I’d consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Sally Beauty Holdings insiders own 0.7% of the company, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Sally Beauty Holdings Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Sally Beauty Holdings we think they are probably pretty confident of a bright future. 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.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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