Insider Spends US$2.2m Buying More Shares In DICK'S Sporting Goods

DICK'S Sporting Goods, Inc. (NYSE:DKS) shareholders (or potential shareholders) will be happy to see that the Independent Director, Mark Barrenechea, recently bought a whopping US$2.2m worth of stock, at a price of US$131. That increased their holding by a full 158%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

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DICK'S Sporting Goods Insider Transactions Over The Last Year

Notably, that recent purchase by Mark Barrenechea is the biggest insider purchase of DICK'S Sporting Goods shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$135. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for DICK'S Sporting Goods share holders is that insiders were buying at near the current price.

In the last twelve months DICK'S Sporting Goods insiders were buying shares, but not selling. 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 DICK'S Sporting Goods

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does DICK'S Sporting Goods 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. A high insider ownership often makes company leadership more mindful of shareholder interests. DICK'S Sporting Goods insiders own 32% of the company, currently worth about US$3.8b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About DICK'S Sporting Goods Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about DICK'S Sporting Goods. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - DICK'S Sporting Goods has 3 warning signs we think you should be aware of.

But note: DICK'S Sporting Goods may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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