This Insider Has Just Sold Shares In Asbury Automotive Group, Inc. (NYSE:ABG)

We note that the Asbury Automotive Group, Inc. (NYSE:ABG) VP, Controller & Chief Accounting Officer, William Stax, recently sold US$38k worth of stock for US$90.35 per share. It wasn’t a huge sale, but it did reduce their holding by 10.9%. This does not instill confidence.

View our latest analysis for Asbury Automotive Group

The Last 12 Months Of Insider Transactions At Asbury Automotive Group

The insider, Dennis Clements, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$71.12 each. That means that an insider was selling shares at slightly below the current price (US$91.17). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was 82.5% of Dennis Clements’s holding.

In the last twelve months insiders netted US$8.8m for 115k shares sold. Insiders in Asbury Automotive Group didn’t buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:ABG Recent Insider Trading, August 6th 2019
NYSE:ABG Recent Insider Trading, August 6th 2019

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Asbury Automotive Group insiders own about US$20m worth of shares. That equates to 1.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Asbury Automotive Group Tell Us?

Insiders sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. On the plus side, Asbury Automotive Group makes money, and is growing profits. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Asbury Automotive Group.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.