G-III Apparel Group Vice Chairman & President Sammy Aaron Sells 65% Of Holding

We wouldn't blame G-III Apparel Group, Ltd. (NASDAQ:GIII) shareholders if they were a little worried about the fact that Sammy Aaron, the Vice Chairman & President recently netted about US$2.9m selling shares at an average price of US$30.74. That diminished their holding by a very significant 65%, which arguably implies a strong desire to reallocate capital.

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G-III Apparel Group Insider Transactions Over The Last Year

Notably, that recent sale by Sammy Aaron is the biggest insider sale of G-III Apparel Group shares that we've seen in the last year. That means that even when the share price was below the current price of US$31.63, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 65% of Sammy Aaron's stake.

Over the last year, we can see that insiders have bought 28.08k shares worth US$602k. On the other hand they divested 93.61k shares, for US$2.9m. 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 G-III Apparel Group

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. G-III Apparel Group insiders own 12% of the company, currently worth about US$167m 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 Do The G-III Apparel Group Insider Transactions Indicate?

An insider sold G-III Apparel Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for G-III Apparel Group you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.