Stock Analysis

Have Insiders Sold Johns Lyng Group Limited (ASX:JLG) Shares Recently?

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We'd be surprised if Johns Lyng Group Limited (ASX:JLG) shareholders haven't noticed that the Non-Executive Director, Curtis Mudd, recently sold AU$675k worth of stock at AU$6.50 per share. The eyebrow raising move amounted to a reduction of 12% in their holding.

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The Last 12 Months Of Insider Transactions At Johns Lyng Group

Over the last year, we can see that the biggest insider sale was by the Chief Operating Officer, Lindsay Barber, for AU$25m worth of shares, at about AU$6.25 per share. So what is clear is that an insider saw fit to sell at around the current price of AU$6.16. 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.

Over the last year we saw more insider selling of Johns Lyng Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:JLG Insider Trading Volume March 18th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Johns Lyng Group Boast High 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. Insiders own 7.7% of Johns Lyng Group shares, worth about AU$123m. 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 Do The Johns Lyng Group Insider Transactions Indicate?

Insiders sold Johns Lyng Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Johns Lyng Group is profitable and growing, we're not too worried by this. 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. You'd be interested to know, that we found 1 warning sign for Johns Lyng Group and we suggest you have a look.

But note: Johns Lyng 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.

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