Some Jacobs Solutions Inc. (NYSE:J) shareholders may be a little concerned to see that the Executive Chair, Steven Demetriou, recently sold a substantial US$911k worth of stock at a price of US$137 per share. However, that sale only accounted for 1.4% of their holding, so arguably it doesn't say much about their conviction.
Check out our latest analysis for Jacobs Solutions
Jacobs Solutions Insider Transactions Over The Last Year
Notably, that recent sale by Steven Demetriou is the biggest insider sale of Jacobs Solutions shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$137. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. It is worth noting that this sale was only 1.4% of Steven Demetriou's holding.
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 winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Jacobs Solutions
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. Jacobs Solutions insiders own 1.0% of the company, currently worth about US$167m 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 Do The Jacobs Solutions Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Jacobs Solutions is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Jacobs Solutions and we suggest you have a look.
But note: Jacobs Solutions 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.