Executive Chairman at Dick’s Sporting Goods Exercises Options Worth $23.18M – Dick’s Sporting Goods (NYSE:DKS)

Edward W. StackCEO at Dick’s sporting goods (NYSE:DKS), reported a large exercise of the company’s stock options on March 15, according to a new SEC filing.

What happened: A Form 4 filed by the Securities and Exchange Commission on Wednesday showed Stack, executive chairman of Dick’s Sporting Goods, a consumer discretionary company, exercising stock options worth 159,461 shares of DKS at an exercise price of $41.59 has.

Dick’s sporting goods Shares are trading down 0.92% at $145.35 as of this writing on Thursday morning. Since the current price is $145.35, Stack’s 159,461 shares are worth $23,178,453.

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The Importance of Insider Transactions

Insider transactions should not be used primarily to make an investment decision, however an insider transaction can be an important factor in an investment decision.

Any shareholder who holds at least 10% of a company is legally referred to as an “insider”. This can include executives in the C-suite and large hedge funds. These insiders must notify the public of their transactions via a Form 4, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, it is an indication that they expect the price to rise.

Insider selling, on the other hand, can happen for a variety of reasons and doesn’t necessarily mean the seller thinks the stock will go down.

Important transaction codes

Investors prefer to focus on transactions occurring in the open market, as identified in Table I of the Form 4 filing. A P in box 3 indicates a purchase while S indicates a sale. transaction code C specifies the conversion of an option and transaction code A points out that the insider may have been forced to sell shares in order to receive compensation that the company promised him when he was hired.

View the full list of insider trading from Dick’s Sporting Goods.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.