This Insider Has Just Sold Shares In Five Below

Some Five Below, Inc. (NASDAQ:FIVE) shareholders may be a little concerned to see that the COO & Interim Treasurer, Kenneth Bull, recently sold a substantial US$4.4m worth of stock at a price of US$175 per share. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Five Below

In fact, the recent sale by Kenneth Bull was the biggest sale of Five Below shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$177. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Five Below insiders didn't buy any company stock. 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 Five Below

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Five Below

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. We usually like to see fairly high levels of insider ownership. It's great to see that Five Below insiders own 2.4% of the company, worth about US$232m. 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 Does This Data Suggest About Five Below Insiders?

Insiders haven't bought Five Below stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Five Below is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Five Below. At Simply Wall St, we found 1 warning sign for Five Below that deserve your attention before buying any shares.

Of course Five Below may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.