Investors would have done well placing retail brand conglomerate VF Corp (VFC 10.04%) in their shopping carts on Tuesday. The company, which owns familiar brands such as Vans, The North Face, and Timberland, saw investors load up on its stock after a member of the board of directors did so. Ultimately, the shares closed 10% higher in price — more than good enough to top the S&P 500 index’s 1.9% rise.
A director bought 20,000 shares of VF Corp common stock
The purchasing party was Matthew Shattock, VF Corp disclosed in a regulatory filing published after market hours on Monday. Shattock purchased 20,000 shares of the company’s common stock at a price of just over $14.58 apiece, for a total outlay of $291,600.
While that’s only a drop in the bucket considering VF Corp has nearly 389 million shares outstanding, it’s a vote of confidence in the company’s business. It’s little wonder that the market took it as a good sign, and followed Shattock’s lead.
VF Corp is certainly a company in need of a win. Despite its prominence in the retail world, it has struggled lately. At the end of October, it published its second quarter of fiscal 2024 results; these revealed a modest yet concerning decline in revenue. Non-GAAP (generally accepted accounting principles) adjusted earnings per share also went south, and the company announced a deep cut to its dividend that pleased no one.
Buyer beware, but…
While it’s never wise to thoughtlessly follow along with another investor’s move on a stock, insider buying is worth tracking for anyone holding a particular title (or considering such a play). This can indicate how people managing and overseeing a company really view its prospects.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.