Insiders at Columbia Sportswear Company (NASDAQ:COLM) made a handsome sum after selling shares worth US$93.65 per share at present for US$105

Despite Columbia Sportswear Company Inc (NASDAQ:COLM) shares rising 9.5% last week, insiders who sold US$180,000 worth of stock in the past 12 months should be better off . Selling at an average price of US$105, which is higher than the current price, might have been the right move, as holding on to shares would have meant their investment would be worth less now than it was at the time of the sale.

While insider trading isn’t the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider trading altogether.

Check out our latest analysis for Columbia Sportswear

The last 12 months of insider trading at Columbia Sportswear

The independent director, Walter Klenz, had the biggest insider sale in the last 12 months. This single transaction was for US$126,000 of shares at a price of US$106 each. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. It is reassuring that this sale was made at a price well above the current share price of US$93.65. So this may not shed much light on insider confidence at current levels.

Columbia Sportswear insiders didn’t buy any shares last year. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!

NasdaqGS: COLM Insider Trading Volume, March 19, 2022

If you’re like me, then you do not want to miss this free list of growing companies insiders are buying.

Columbia Sportswear Insider Property

Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. Columbia Sportswear insiders own approximately $2.7 billion in stock (or 44% of the company). Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.

So what do Columbia Sportswear’s insider trading indicate?

There have been no insider trades in the last three months – that’s not saying much. While we’re pleased with Columbia Sportswear’s high insider ownership, we can’t say the same about the stock sale. If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily you can check this free report showing analysts’ predictions for its future.

Sure Columbia Sportswear may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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