Investors would have done well placing retail brand conglomerate VF Corp (VFC 0.16%) 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.
