Those following along with PVH Corp. (NYSE:PVH) will no doubt be intrigued by the recent purchase of shares by Stefan Larsson, CEO & Director of the company, who spent a stonking US$1.0m on stock at an average price of US$53.94. That purchase boosted their holding by 129%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At PVH
In fact, the recent purchase by Stefan Larsson was the biggest purchase of PVH shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$57.88 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for PVH share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$1.3m for 23.21k shares. But insiders sold 455.00 shares worth US$37k. In the last twelve months there was more buying than selling by PVH insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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 PVH insiders own 0.3% of the company, worth about US$13m. 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 PVH Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest PVH insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of PVH.
But note: PVH 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, but not derivative transactions.
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