Investors Chill To Five Below Inc (FIVE) In The Wake Of Sales Miss

Another useful signal for investors to monitor is the insider trading activity surrounding a company. These transactions give an investor the opportunity to see the company’s future prospects from the management’s lens. Before we delve deeper into this, it is noteworthy that insider purchases tend to give a much stronger signal than insider selling, which can occur due to a wide variety of reasons and not just a bearish outlook. In the case of Five Below Inc (NASDAQ:FIVE), we haven’t detected any insider selling, while CEO Joel Anderson purchased some 3,000 shares in April, taking his total stake to about 16,100 shares.

Considering that Five Below Inc (NASDAQ:FIVE)’s failure to meet the estimated sales numbers was because of one-time events, and given the generally stable outlook from hedge funds and an insider purchase by the CEO himself, we would recommend investors take up a long position on the current dip.

Disclosure: None