Those following along with Canada Goose Holdings Inc. (TSE:GOOS) will no doubt be intrigued by the recent purchase of shares by Daniel Reiss, Chairman & CEO of the company, who spent a stonking CA$1.1m on stock at an average price of CA$10.62. That purchase boosted their holding by 84%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Canada Goose Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman & CEO Daniel Reiss was not the only time they traded Canada Goose Holdings shares this year. Earlier in the year, they sold shares at a price ofCA$13.79 per share in a -CA$1.5m transaction. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$10.99). So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Canada Goose Holdings shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Canada Goose Holdings
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Insider Ownership Of Canada Goose Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Canada Goose Holdings insiders own 26% of the company, currently worth about CA$264m 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 Do The Canada Goose Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Canada Goose Holdings insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Canada Goose Holdings that deserve your attention before buying any shares.
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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.