We wouldn't blame Five Below, Inc. (NASDAQ:FIVE) shareholders if they were a little worried about the fact that George Hill, the Chief Retail Officer recently netted about US$514k selling shares at an average price of US$200. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.5%.

Check out our latest analysis for Five Below

The Last 12 Months Of Insider Transactions At Five Below

In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Non-Executive Chairman, Thomas Vellios, sold US$9.1m worth of shares at a price of US$186 per share. That means that even when the share price was below the current price of US$200, an insider wanted to cash in some shares. 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 only 12% of Thomas Vellios's holding.

Insiders in Five Below didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Five Below insiders own 2.0% of the company, currently worth about US$225m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Five Below Insiders?

Insiders haven't bought Five Below 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. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Five Below is showing 2 warning signs in our investment analysis, and 1 of those is significant...

But note: Five Below 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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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.