Anyone interested in Ingles Markets, Incorporated (NASDAQ:IMKT.A) should probably be aware that the Director, Laura Sharp, recently divested US$385k worth of shares in the company, at an average price of US$77.00 each. That sale was 12% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Ingles Markets
In fact, the recent sale by Director Laura Sharp was not their only sale of Ingles Markets shares this year. They previously made an even bigger sale of -US$600k worth of shares at a price of US$75.01 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$76.27. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 11% of Laura Sharp's stake.
Laura Sharp divested 44.50k shares over the last 12 months at an average price of US$76.84. 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!
I will like Ingles Markets 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 Ingles Markets 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. We usually like to see fairly high levels of insider ownership. Ingles Markets insiders own 22% of the company, currently worth about US$328m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Ingles Markets Tell Us?
An insider hasn't bought Ingles Markets stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. You'd be interested to know, that we found 2 warning signs for Ingles Markets and we suggest you have a look.
Of course Ingles Markets may not be the best stock to buy. So you may wish to see this free collection of high quality 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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