We wouldn't blame Jardine Matheson Holdings Limited (SGX:J36) shareholders if they were a little worried about the fact that Benjamin Keswick, the Executive Director recently netted about US$10.0m selling shares at an average price of US$36.81. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.2%.
The Last 12 Months Of Insider Transactions At Jardine Matheson Holdings
In fact, the recent sale by Benjamin Keswick was the biggest sale of Jardine Matheson Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$35.37. While insider selling is a negative, to us, it is more negative if the shares are sold 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 161.30k shares worth US$7.1m. On the other hand they divested 271.65k shares, for US$10.0m. 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!
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Insider Ownership Of Jardine Matheson Holdings
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. It's great to see that Jardine Matheson Holdings insiders own 7.1% of the company, worth about US$730m. 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 Jardine Matheson Holdings Tell Us?
The stark truth for Jardine Matheson Holdings is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Jardine Matheson Holdings is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jardine Matheson Holdings. In terms of investment risks, we've identified 3 warning signs with Jardine Matheson Holdings and understanding these should be part of your investment process.
But note: Jardine Matheson Holdings 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com