This Insider Has Just Sold Shares In Jardine Matheson Holdings

Some Jardine Matheson Holdings Limited (SGX:J36) shareholders may be a little concerned to see that the Executive Chairman, Benjamin Keswick, recently sold a substantial US$1.9m worth of stock at a price of US$37.77 per share. However, that sale only accounted for 0.4% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Jardine Matheson Holdings

The Last 12 Months Of Insider Transactions At Jardine Matheson Holdings

In fact, the recent sale by Executive Chairman Benjamin Keswick was not their only sale of Jardine Matheson Holdings shares this year. They previously made an even bigger sale of -US$10.0m worth of shares at a price of US$37.01 per share. That means that even when the share price was slightly below the current price of US$37.05, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.2% of Benjamin Keswick's holding.

Over the last year, we can see that insiders have bought 119.70k shares worth US$4.2m. But insiders sold 320.78k shares worth US$12m. Benjamin Keswick sold a total of 320.78k shares over the year at an average price of US$36.96. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jardine Matheson Holdings insiders own 6.9% of the company, currently worth about US$740m based on the recent share price. 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 Does This Data Suggest About Jardine Matheson Holdings Insiders?

An insider hasn't bought Jardine Matheson Holdings stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. 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. You'd be interested to know, that we found 4 warning signs for Jardine Matheson Holdings and we suggest you have a look.

Of course Jardine Matheson Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.