Insiders seem to have made the most of their holdings by selling US$2.0m worth of Steven Madden, Ltd. (NASDAQ:SHOO) stock at an average sell price of US$41.43 during the past year. The company’s market worth decreased by US$103m over the past week after the stock price dropped 4.3%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
However if you’d rather see where the opportunities and risks are within SHOO’s industry, you can check out our analysis on the US Luxury industry.
Steven Madden Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Edward Rosenfeld, sold US$1.6m worth of shares at a price of US$40.37 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$29.27. So it is hard to draw any strong conclusion from it.
Insiders in Steven Madden didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. We usually like to see fairly high levels of insider ownership. Steven Madden insiders own about US$136m worth of shares (which is 5.9% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Steven Madden Insiders?
The fact that there have been no Steven Madden insider transactions recently certainly doesn’t bother us. While we feel good about high insider ownership of Steven Madden, we can’t say the same about the selling of shares. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Steven Madden. At Simply Wall St, we’ve found that Steven Madden has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
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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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.
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Read More: As Steven Madden, Ltd.’s (NASDAQ:SHOO)) market cap dropped by US$103m, insiders who sold