Independent Director Of Designer Brands Sold 66% Of Their Shares
Independent Director Harvey Sonnenberg of Designer Brands Inc. (NYSE:DBI) sold 66% of his shares, amounting to US$226k at an average price of US$4.52 each. This significant divestment raises concerns about the stock's valuation, especially as it was the largest insider sale in the past year. Despite insiders owning 30% of the company, there have been no recent purchases, indicating caution among insiders. Potential investors should consider the risks associated with the company before making decisions.
Anyone interested in Designer Brands Inc. (NYSE:DBI) should probably be aware that the Independent Director, Harvey Sonnenberg, recently divested US$226k worth of shares in the company, at an average price of US$4.52 each. Equally important, that sale actually reduced their holding by a full 66% which hardly makes us feel bullish about the stock.
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Designer Brands Insider Transactions Over The Last Year
In fact, the recent sale by Harvey Sonnenberg was the biggest sale of Designer Brands shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$4.54). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 66% of Harvey Sonnenberg's holding.
Designer Brands insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Designer Brands
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Designer Brands Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Designer Brands insiders own 30% of the company, worth about US$67m. 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 Designer Brands Tell Us?
Insiders haven't bought Designer Brands stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Designer Brands has 4 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.
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.
