Some Ross Stores, Inc. (NASDAQ:ROST) shareholders may be a little concerned to see that insider Karen Fleming recently sold a substantial US$1.5m worth of stock at a price of US$213 per share. However, that sale only accounted for 7.1% of their holding, so arguably it doesn't say much about their conviction.
Ross Stores Insider Transactions Over The Last Year
The CEO & Director, James Conroy, made the biggest insider sale in the last 12 months. That single transaction was for US$5.7m worth of shares at a price of US$146 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$220. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 20% of James Conroy's holding.
Insiders in Ross Stores didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Ross Stores
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Ross Stores
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. Ross Stores insiders own about US$1.6b worth of shares (which is 2.3% of the company). 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 Ross Stores Insiders?
Insiders sold Ross Stores shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Ross Stores makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. You'd be interested to know, that we found 1 warning sign for Ross Stores and we suggest you have a look.
Of course Ross Stores may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.