Some Sweetgreen, Inc. (NYSE:SG) shareholders may be a little concerned to see that the Independent Director, Youngme Moon, recently sold a substantial US$1.4m worth of stock at a price of US$37.83 per share. That diminished their holding by a very significant 52%, which arguably implies a strong desire to reallocate capital.

Sweetgreen Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Jonathan Neman, for US$6.1m worth of shares, at about US$35.77 per share. So what is clear is that an insider saw fit to sell at around the current price of US$33.51. 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.

Sweetgreen 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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Does Sweetgreen Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Sweetgreen insiders own about US$517m worth of shares (which is 13% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Sweetgreen Insiders?

Insiders haven't bought Sweetgreen stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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 Sweetgreen. At Simply Wall St, we found 3 warning signs for Sweetgreen that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.