Independent Chair of the Board of Lululemon Athletica Picks Up 4.2% More Stock

Lululemon Athletica Inc +0.34%

Lululemon Athletica Inc

LULU

311.82

+0.34%

Lululemon Athletica Inc. (NASDAQ:LULU) shareholders (or potential shareholders) will be happy to see that the Independent Chair of the Board, Martha A. Morfitt, recently bought a whopping US$1.4m worth of stock, at a price of US$389. While that only increased their holding size by 4.2%, it is still a big swing by our standards.

View our latest analysis for Lululemon Athletica

Lululemon Athletica Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Product Officer, Michelle Choe, sold US$3.6m worth of shares at a price of US$401 per share. So we know that an insider sold shares at around the present share price of US$391. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year we saw more insider selling of Lululemon Athletica shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:LULU Insider Trading Volume March 30th 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Lululemon Athletica

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. Lululemon Athletica insiders own about US$1.9b worth of shares (which is 3.8% of the company). 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 Do The Lululemon Athletica Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. Of course, the future is what matters most. So if you are interested in Lululemon Athletica, you should check out this free report on analyst forecasts for the company.

But note: Lululemon Athletica 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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