Some AutoNation, Inc. (NYSE:AN) shareholders may be a little concerned to see that insider Edward Lampert recently sold a substantial US$99m worth of stock at a price of US$151 per share. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.
AutoNation Insider Transactions Over The Last Year
In fact, the recent sale by Edward Lampert was the biggest sale of AutoNation shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$162. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 8.42k shares worth US$1.2m. But insiders sold 2.16m shares worth US$326m. Over the last year we saw more insider selling of AutoNation shares, than buying. 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!
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).
Insider Ownership Of AutoNation
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AutoNation insiders own about US$734m worth of shares (which is 11% 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 AutoNation Tell Us?
The insider sales have outweighed the insider buying, at AutoNation, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. 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. To that end, you should learn about the 3 warning signs we've spotted with AutoNation (including 2 which are potentially serious).
But note: AutoNation 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.
