100% Of This Jet2 Insider's Holdings Were Sold

Insiders were net sellers of Jet2 plc's (LON:JET2 ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Jet2

Jet2 Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Mark Aubrey Laurence, sold UK£1.9m worth of shares at a price of UK£12.91 per share. That means that even when the share price was below the current price of UK£15.36, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was 100% of Mark Aubrey Laurence's stake. Mark Aubrey Laurence was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 11.76k shares for UK£164k. But they sold 300.00k shares for UK£3.9m. Mark Aubrey Laurence divested 300.00k shares over the last 12 months at an average price of UK£12.89. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Jet2 Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Jet2. Not only was there no selling that we can see, but they collectively bought UK£45k worth of shares. That shows some optimism about the company's future.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jet2 insiders own 15% of the company, currently worth about UK£500m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Jet2 Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Jet2 insider transactions. Of course, the future is what matters most. So if you are interested in Jet2, you should check out this free report on analyst forecasts for the company.

But note: Jet2 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 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.