J Sainsbury CFO, Member of Operating Board & Director Blathnaid Bergin Sells 31% Of Holding
We wouldn't blame J Sainsbury plc (LON:SBRY) shareholders if they were a little worried about the fact that Blathnaid Bergin, the CFO, Member of Operating Board & Director recently netted about UK£848k selling shares at an average price of UK£3.32. That's a big disposal, and it decreased their holding size by 31%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At J Sainsbury
In fact, the recent sale by Blathnaid Bergin was the biggest sale of J Sainsbury 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 (UK£3.34). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 31% of Blathnaid Bergin's stake.
Over the last year we saw more insider selling of J Sainsbury shares, than buying. 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!
View our latest analysis for J Sainsbury
I will like J Sainsbury better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does J Sainsbury Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. J Sainsbury insiders own about UK£13m worth of shares. That equates to 0.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The J Sainsbury Insider Transactions Indicate?
An insider hasn't bought J Sainsbury stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that J Sainsbury is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of J Sainsbury.
But note: J Sainsbury 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.