President of Americas & Global Guest Innovation Celeste Burgoyne Sold A Bunch Of Shares In lululemon athletica

Some lululemon athletica inc. (NASDAQ:LULU) shareholders may be a little concerned to see that the President of Americas & Global Guest Innovation, Celeste Burgoyne, recently sold a substantial US$2.8m worth of stock at a price of US$204 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

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lululemon athletica Insider Transactions Over The Last Year

In fact, the recent sale by Celeste Burgoyne was the biggest sale of lululemon athletica shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$209, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Celeste Burgoyne's holding.

Insiders in lululemon athletica didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for lululemon athletica

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Insider Ownership Of lululemon athletica

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. lululemon athletica insiders own about US$1.9b worth of shares (which is 7.6% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At lululemon athletica Tell Us?

Insiders sold lululemon athletica shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that lululemon athletica is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 instance, we've identified 2 warning signs for lululemon athletica (1 is significant) you should be aware of.

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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.