Some Jefferies Financial Group Inc. (NYSE:JEF) shareholders may be a little concerned to see that the CEO & Director, Richard Handler, recently sold a substantial US$29m worth of stock at a price of US$72.26 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.4%.
Jefferies Financial Group Insider Transactions Over The Last Year
In fact, the recent sale by CEO & Director Richard Handler was not their only sale of Jefferies Financial Group shares this year. They previously made an even bigger sale of -US$65m worth of shares at a price of US$43.50 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$71.50. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 8.2% of Richard Handler's holding.
In the last year Jefferies Financial Group insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Jefferies Financial Group 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 Of Jefferies Financial Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Jefferies Financial Group insiders own 21% of the company, worth about US$3.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Jefferies Financial Group Insiders?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Jefferies Financial Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jefferies Financial Group. Every company has risks, and we've spotted 2 warning signs for Jefferies Financial Group you should know about.
Of course Jefferies Financial Group 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.
