Some The J. M. Smucker Company (NYSE:SJM) shareholders may be a little concerned to see that the CEO, President & Director, Mark Smucker, recently sold a substantial US$1.3m worth of stock at a price of US$131 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 5.1%.
The Last 12 Months Of Insider Transactions At J. M. Smucker
Notably, that recent sale by Mark Smucker is the biggest insider sale of J. M. Smucker shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$129. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year J. M. Smucker insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!NYSE:SJM Insider Trading Volume June 24th 2021
I will like J. M. Smucker better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does J. M. Smucker Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. J. M. Smucker insiders own 4.1% of the company, currently worth about US$568m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About J. M. Smucker Insiders?
Insiders haven't bought J. M. Smucker 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. On the plus side, J. M. Smucker makes money, and is growing profits. 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. 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. For instance, we've identified 3 warning signs for J. M. Smucker (1 can't be ignored) you should be aware of.
But note: J. M. Smucker 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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