We wouldn't blame Johnson & Johnson (NYSE:JNJ) shareholders if they were a little worried about the fact that Vanessa Broadhurst, a company insider, recently netted about US$1.4m selling shares at an average price of US$162. That sale reduced their total holding by 37% which is hardly insignificant, but far from the worst we've seen.
Johnson & Johnson Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Human Resources Officer, Peter Fasolo, for US$3.4m worth of shares, at about US$170 per share. So what is clear is that an insider saw fit to sell at around the current price of US$159. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in Johnson & Johnson didn't buy any shares in the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Johnson & Johnson
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Johnson & Johnson insiders own about US$292m worth of shares (which is 0.08% of the company). 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 Johnson & Johnson Tell Us?
An insider sold Johnson & Johnson shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Johnson & Johnson has 2 warning signs we think you should be aware of.
Of course Johnson & Johnson 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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