We'd be surprised if Steven Madden, Ltd. (NASDAQ:SHOO) shareholders haven't noticed that the Chief Merchandising Officer, Karla Frieders, recently sold US$449k worth of stock at US$44.91 per share. The eyebrow raising move amounted to a reduction of 10% in their holding.
The Last 12 Months Of Insider Transactions At Steven Madden
Over the last year, we can see that the biggest insider sale was by the Founder and Creative & Design Chief, Steven Madden, for US$5.2m worth of shares, at about US$34.86 per share. That means that an insider was selling shares at slightly below the current price (US$45.31). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 6.0% of Steven Madden's holding.
In the last year Steven Madden insiders didn't buy any company stock. 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!
I will like Steven Madden better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Steven Madden Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Steven Madden insiders own 2.1% of the company, worth about US$68m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Steven Madden Tell Us?
Insiders haven't bought Steven Madden stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Steven Madden makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Steven Madden. For example - Steven Madden has 2 warning signs we think you should be aware of.
But note: Steven Madden 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.