Insiders were net sellers of J&J Snack Foods Corp.'s (NASDAQ:JJSF ) stock during the past year. That is, insiders sold more stock than they bought.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for J&J Snack Foods
The Last 12 Months Of Insider Transactions At J&J Snack Foods
Over the last year, we can see that the biggest insider sale was by the President, Daniel Fachner, for US$1.9m worth of shares, at about US$165 per share. That means that even when the share price was below the current price of US$173, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 34% of Daniel Fachner's holding. Daniel Fachner was the only individual insider to sell shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders At J&J Snack Foods Have Sold Stock Recently
The last three months saw significant insider selling at J&J Snack Foods. In total, President Daniel Fachner dumped US$1.9m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. J&J Snack Foods insiders own about US$673m worth of shares (which is 20% 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.
So What Do The J&J Snack Foods Insider Transactions Indicate?
An insider sold J&J Snack Foods shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, J&J Snack Foods makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. In terms of investment risks, we've identified 1 warning sign with J&J Snack Foods and understanding this should be part of your investment process.
Of course J&J Snack Foods 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.
