Insiders were net sellers of Johnson Outdoors Inc.'s (NASDAQ:JOUT ) stock during the past year. That is, insiders sold more stock than they bought.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Johnson Outdoors
Johnson Outdoors Insider Transactions Over The Last Year
The Independent Director, John Fahey, made the biggest insider sale in the last 12 months. That single transaction was for US$271k worth of shares at a price of US$63.94 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$49.10. So it may not tell us anything about how insiders feel about the current share price. John Fahey was the only individual insider to sell over the last year.
John Fahey sold a total of 5.52k shares over the year at an average price of US$62.68. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Johnson Outdoors better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Johnson Outdoors
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Johnson Outdoors insiders own about US$162m worth of shares (which is 29% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Johnson Outdoors Tell Us?
The fact that there have been no Johnson Outdoors insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Johnson Outdoors, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Johnson Outdoors and understanding this should be part of your investment process.
But note: Johnson Outdoors may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.