We’d be surprised if Sanderson Farms, Inc. (NASDAQ:SAFM) shareholders haven’t noticed that the Director, John Bierbusse, recently sold US$362k worth of stock at US$121 per share. The eyebrow raising move amounted to a reduction of 25% in their holding.
Sanderson Farms Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President & Director, Lampkin Butts, for US$1.6m worth of shares, at about US$156 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$117. So it may not shed much light on insider confidence at current levels.
In the last year Sanderson Farms insiders didn’t buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Sanderson Farms better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Sanderson Farms Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Sanderson Farms insiders own 5.5% of the company, worth about US$142m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Sanderson Farms 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. 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 Sanderson Farms. For example – Sanderson Farms has 1 warning sign we think you should be aware of.
But note: Sanderson Farms 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, but not derivative transactions.
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