We wouldn't blame Asbury Automotive Group, Inc. (NYSE:ABG) shareholders if they were a little worried about the fact that Daniel Clara, the Senior Vice President of Operations recently netted about US$1.1m selling shares at an average price of US$237. Probably the most concerning element of the whole transaction is that the disposal amounted to 62% of their entire holding.
View our latest analysis for Asbury Automotive Group
The Last 12 Months Of Insider Transactions At Asbury Automotive Group
Over the last year, we can see that the biggest insider sale was by the President, David Hult, for US$5.2m worth of shares, at about US$236 per share. That means that an insider was selling shares at around the current price of US$233. 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.
Insiders in Asbury Automotive Group didn't buy any shares in the last year. 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!
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 Asbury Automotive Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Asbury Automotive Group insiders own about US$21m worth of shares. That equates to 0.4% of the company. 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 Asbury Automotive Group Tell Us?
Insiders sold Asbury Automotive Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Asbury Automotive Group makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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 example, Asbury Automotive Group has 3 warning signs (and 1 which is concerning) we think you should know about.
But note: Asbury Automotive Group 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.
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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.