Investors who take an interest in Hibbett, Inc. (NASDAQ:HIBB) should definitely note that the President, Michael Longo, recently paid US$36.17 per share to buy US$271k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 11%.
Check out our latest analysis for Hibbett
Hibbett Insider Transactions Over The Last Year
Notably, that recent purchase by Michael Longo is the biggest insider purchase of Hibbett shares that we've seen in the last year. That implies that an insider found the current price of US$36.61 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Hibbett insider decided to buy shares at close to current prices. Michael Longo was the only individual insider to buy shares in the last twelve months.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Hibbett Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 2.6% of Hibbett shares, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Hibbett Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Hibbett shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hibbett. To that end, you should learn about the 2 warning signs we've spotted with Hibbett (including 1 which doesn't sit too well with us).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.