Jet2 Insider Lowered Holding By 100% During Last Year

Looking at Jet2 plc's (LON:JET2 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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.

Check out our latest analysis for Jet2

Jet2 Insider Transactions Over The Last Year

The insider, Mark Aubrey Laurence, made the biggest insider sale in the last 12 months. That single transaction was for UK£1.9m worth of shares at a price of UK£12.91 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£14.68. 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. 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. 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.

Mark Aubrey Laurence divested 300.00k shares over the last 12 months at an average price of UK£12.89. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Jet2 better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Jet2 Insiders Are Selling The Stock

The last three months saw significant insider selling at Jet2. In total, insider Mark Aubrey Laurence dumped UK£1.9m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Jet2 Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Jet2 insiders own 18% of the company, worth about UK£583m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Jet2 Insider Transactions Indicate?

An insider sold Jet2 shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Jet2 is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Jet2 has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.