We'd be surprised if Sysco Corporation (NYSE:SYY) shareholders haven't noticed that the Independent Director, Sheila Talton, recently sold US$158k worth of stock at US$71.76 per share. The eyebrow raising move amounted to a reduction of 15% in their holding.
View our latest analysis for Sysco
The Last 12 Months Of Insider Transactions At Sysco
In fact, the recent sale by Independent Director Sheila Talton was not their only sale of Sysco shares this year. They previously made an even bigger sale of -US$191k worth of shares at a price of US$77.24 per share. So what is clear is that an insider saw fit to sell at around the current price of US$71.83. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Sheila Talton sold a total of 4.67k shares over the year at an average price of US$74.66. 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!
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Insider Ownership Of Sysco
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Sysco insiders own 0.2% of the company, worth about US$58m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Sysco Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Sysco makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sysco. While conducting our analysis, we found that Sysco has 1 warning sign and it would be unwise to ignore this.
Of course Sysco 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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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.