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Investors who take an interest in Genesco Inc. (NYSE:GCO) should definitely note that the Independent Director, Gregory Sandfort, recently paid US$22.92 per share to buy US$252k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 38%.
The Last 12 Months Of Insider Transactions At Genesco
Notably, that recent purchase by Gregory Sandfort is the biggest insider purchase of Genesco shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$22.09). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Gregory Sandfort was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Genesco
Genesco is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Genesco
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Genesco insiders own about US$20m worth of shares. That equates to 8.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Genesco Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Genesco we think they are probably pretty confident of a bright future. 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. While conducting our analysis, we found that Genesco has 1 warning sign and it would be unwise to ignore it.