We wouldn't blame Jabil Inc. (NYSE:JBL) shareholders if they were a little worried about the fact that Mark Mondello, the Executive Chairman recently netted about US$6.3m selling shares at an average price of US$126. However, that sale only accounted for 2.7% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Jabil
In fact, the recent sale by Executive Chairman Mark Mondello was not their only sale of Jabil shares this year. They previously made an even bigger sale of -US$8.1m worth of shares at a price of US$136 per share. That means that an insider was selling shares at around the current price of US$129. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.
Jabil insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
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. Jabil insiders own about US$533m worth of shares (which is 3.3% 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.
So What Do The Jabil Insider Transactions Indicate?
Insiders 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, Jabil makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jabil. Be aware that Jabil is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...
Of course Jabil 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.