Scholastic Corporation's (NASDAQ:SCHL) stock rose 4.8% last week, but insiders who sold US$252k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$47.22, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Scholastic
The Last 12 Months Of Insider Transactions At Scholastic
Over the last year, we can see that the biggest insider sale was by the Executive VP & President of Scholastic Book Fairs, Sasha Quinton, for US$203k worth of shares, at about US$47.23 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$42.79). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Sasha Quinton.
Sasha Quinton ditched 5.33k shares over the year. The average price per share was US$47.22. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Scholastic 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 Scholastic Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Scholastic insiders own about US$23m worth of shares. That equates to 1.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Scholastic Insiders?
The fact that there have been no Scholastic insider transactions recently certainly doesn't bother us. Our analysis of Scholastic insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.