Looking at Brinker International, Inc.'s (NYSE:EAT ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Brinker International
In the last twelve months, the biggest single sale by an insider was when the Executive VP & CFO, Joseph Taylor, sold US$658k worth of shares at a price of US$41.21 per share. That means that even when the share price was below the current price of US$47.52, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 19% of Joseph Taylor's holding. Joseph Taylor was the only individual insider to sell shares in the last twelve months.
Joseph Taylor sold a total of 25.63k shares over the year at an average price of US$42.58. 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!
I will like Brinker International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Brinker International Insiders Are Selling The Stock
The last three months saw significant insider selling at Brinker International. Specifically, Executive VP & CFO Joseph Taylor ditched US$433k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Brinker International
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Brinker International insiders own about US$52m worth of shares. That equates to 2.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Brinker International Insiders?
An insider sold Brinker International shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Brinker International is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Brinker International. At Simply Wall St, we found 3 warning signs for Brinker International that deserve your attention before buying any shares.
Of course Brinker International 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.