Company insiders such as corporate executives and directors tend to have the most up-to-date information on their firms’ operating and financial activities. If they’re buying company stock, it’s generally a bullish signal.
In this report, we are going to highlight some interesting insider buying at Hibbett Inc (HIBB:US). Hibbett is a US clothing retailer that is focused on athletic attire. Headquartered in Birmingham, Alabama, it operates nearly 1,100 stores across 35 states through the Hibbett Sports and City Gear chains, and also sells its products online. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $1.38 billion.
Hibbert Inc: Insider Buying
Our data shows that on 15 July, two insiders at Hibbert purchased stock. Those who bought shares were Senior Vice President and Chief Information Officer Ronald Blahnik (2,200 shares @ $89.74 per share) and Senior Vice President and General Counsel (GC) David Benck (2,000 shares @ $87.77 per share). Combined, these insiders spent $373,000 on HIBB stock.
3 Purchases In a Month
This insider activity is worth highlighting for several reasons. Firstly, Blahnik and Benck are not the only insiders to buy the stock here recently. In late June, Senior Vice President of Operations Benjamin Knighten spent $100,000 on stock and increased the size of his holding by 23%. So, in total, three top-level insiders at Hibbett have made large purchases within the space of a few weeks.
Secondly, it’s interesting to see a large purchase from the General Counsel. This purchase was substantial both in nominal and relative terms – it increased the size of his holding by 33%. Generally speaking, GCs tend to be quite risk averse in nature.
Bullish Broker Sentiment
Since we last covered Hibbett, on 6 July, a number of brokers have initiated coverage of the stock.
On 8 July, Telsey Advisory Group initiated coverage of the stock with an ‘outperform’ rating and a price target of $110. Analysts at Telsey believe that the company’s sales growth, spurred by pandemic-induced demand for athletic apparel and footwear, can continue over the next several years. They also believe that Hibbett’s concentration of strip mall stores in small and rural markets make it less susceptible to competition from rivals such as Foot Locker.
Meanwhile, on 14 July, Benchmark initiated coverage of the stock with a ‘buy' rating and a $110 price target. The brokerage said that Hibbett is a leading athletic-inspired fashion retailer with a strong management team and a unique opportunity to leverage a growing base of GEN-Z customers.
In light of these developments, we see the insider buying here as a bullish indicator.