Anyone interested in Capri Holdings Limited (NYSE:CPRI) should probably be aware that the Interim Chief Financial Officer, Rajal Mehta, recently divested US$260k worth of shares in the company, at an average price of US$25.96 each. In particular, we note that the sale equated to a 93% reduction in their position size, which doesn't exactly instill confidence.
Capri Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Rajal Mehta was the biggest sale of Capri Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$25.71. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
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!
Check out our latest analysis for Capri Holdings
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Insider Ownership Of Capri Holdings
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. It appears that Capri Holdings insiders own 2.6% of the company, worth about US$81m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Capri Holdings Tell Us?
An insider sold Capri Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. For example, Capri Holdings has 2 warning signs (and 1 which is potentially serious) we think you should know about.
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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.