This Insider Has Just Sold Shares In Gap
We wouldn't blame The Gap, Inc. (NYSE:GAP) shareholders if they were a little worried about the fact that William Fisher, the Independent Director recently netted about US$1.5m selling shares at an average price of US$23.06. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.1%.
The Last 12 Months Of Insider Transactions At Gap
Over the last year, we can see that the biggest insider sale was by the Independent Director, Robert Fisher, for US$14m worth of shares, at about US$27.45 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$22.51. So it may not shed much light on insider confidence at current levels.
Gap insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Gap
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 Gap Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Gap insiders own about US$3.6b worth of shares (which is 45% 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 Gap Insiders?
An insider hasn't bought Gap 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. But since Gap is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of 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. At Simply Wall St, we've found that Gap has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
But note: Gap 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.