This Insider Has Just Sold Shares In JB Hi-Fi

We wouldn't blame JB Hi-Fi Limited (ASX:JBH) shareholders if they were a little worried about the fact that Nick Wells, the Group CFO & Executive Director recently netted about AU$763k selling shares at an average price of AU$75.92. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At JB Hi-Fi

In fact, the recent sale by Group CFO & Executive Director Nick Wells was not their only sale of JB Hi-Fi shares this year. They previously made an even bigger sale of -AU$931k worth of shares at a price of AU$44.53 per share. That means that an insider was selling shares at slightly below the current price (AU$78.12). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 30% of Nick Wells's holding.

JB Hi-Fi 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!

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Insider Ownership Of JB Hi-Fi

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. JB Hi-Fi insiders own about AU$26m worth of shares. That equates to 0.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The JB Hi-Fi Insider Transactions Indicate?

Insiders sold JB Hi-Fi shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for JB Hi-Fi and we suggest you have a look.

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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.