Don't Ignore The Insider Selling In Jet2

Explore Jet2's Fair Values from the Community and select yours

We wouldn't blame Jet2 plc (LON:JET2) shareholders if they were a little worried about the fact that Stephen Heapy, the CEO & Executive Director recently netted about UK£678k selling shares at an average price of UK£16.37. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.4%.

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The Last 12 Months Of Insider Transactions At Jet2

Notably, that recent sale by Stephen Heapy is the biggest insider sale of Jet2 shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of UK£16.31. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 4.40k shares worth UK£65k. But insiders sold 73.03k shares worth UK£1.2m. Over the last year we saw more insider selling of Jet2 shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Jet2 Boast High Insider Ownership?

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. Jet2 insiders own about UK£505m worth of shares (which is 15% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Jet2 Insiders?

Insiders haven't bought Jet2 stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Jet2 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. 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. Case in point: We've spotted 1 warning sign for Jet2 you should be aware of.

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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.