Some Performance Food Group Company (NYSE:PFGC) shareholders may be a little concerned to see that the Chairman & CEO, George Holm, recently sold a substantial US$4.7m worth of stock at a price of US$73.53 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 3.0%.
Performance Food Group Insider Transactions Over The Last Year
In fact, the recent sale by George Holm was the biggest sale of Performance Food Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$74.32). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 3.0% of George Holm's holding.
Performance Food Group insiders didn't buy any shares over the last year. 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!
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Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Performance Food Group insiders own 2.1% of the company, worth about US$234m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Performance Food Group Tell Us?
Insiders sold Performance Food Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Performance Food Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Performance Food Group. In terms of investment risks, we've identified 2 warning signs with Performance Food Group and understanding them should be part of your investment process.
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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.