We wouldn't blame The TJX Companies, Inc. (NYSE:TJX) shareholders if they were a little worried about the fact that Ernie Herrman, the CEO, President & Director recently netted about US$2.3m selling shares at an average price of US$121. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.6%.

The Last 12 Months Of Insider Transactions At TJX Companies

Notably, that recent sale by CEO, President & Director Ernie Herrman was not the only time they sold TJX Companies shares this year. They previously made an even bigger sale of -US$2.4m worth of shares at a price of US$121 per share. That means that even when the share price was slightly below the current price of US$121, 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. 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. This single sale was just 3.5% of Ernie Herrman's stake.

In the last year TJX Companies insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of TJX Companies

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. It's great to see that TJX Companies insiders own 0.1% of the company, worth about US$167m. 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 TJX Companies Tell Us?

Insiders sold TJX Companies 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, TJX Companies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for TJX Companies you should be aware of.

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.