Some Pilgrim's Pride Corporation (NASDAQ:PPC) shareholders may be a little concerned to see that the President & CEO, Fabio Sandri, recently sold a substantial US$2.9m worth of stock at a price of US$44.50 per share. That diminished their holding by a very significant 71%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Pilgrim's Pride
In fact, the recent sale by Fabio Sandri was the biggest sale of Pilgrim's Pride shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$44.42. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Pilgrim's Pride insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Pilgrim's Pride better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Pilgrim's Pride insiders have about 0.02% of the stock, worth approximately US$1.9m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Pilgrim's Pride Tell Us?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Pilgrim's Pride is growing earnings. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Pilgrim's Pride has 2 warning signs we think you should be aware of.
Of course Pilgrim's Pride may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.