We wouldn't blame Bath & Body Works, Inc. (NYSE:BBWI) shareholders if they were a little worried about the fact that Sarah Nash, the Independent Chair of the Board recently netted about US$2.0m selling shares at an average price of US$41.50. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Bath & Body Works
Notably, that recent sale by Sarah Nash is the biggest insider sale of Bath & Body Works shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$41.92, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 24% of Sarah Nash's holding.
Bath & Body Works insiders didn't buy any shares 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Bath & Body Works Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Bath & Body Works insiders own 0.4% of the company, worth about US$42m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Bath & Body Works Insiders?
Insiders sold Bath & Body Works shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Bath & Body Works makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bath & Body Works. To that end, you should learn about the 4 warning signs we've spotted with Bath & Body Works (including 1 which is significant).
But note: Bath & Body Works may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com