We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Jason Industries, Inc. (NASDAQ:JASN), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
Jason Industries Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Director Jeffry Quinn for US$2.7m worth of shares, at about US$2.70 per share. That is hardly a positive sign, even though it took place above the latest price (US$1.41). So it may not shed much light on insider confidence at current levels. Jeffry Quinn was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 80.78k shares for US$195k. But insiders sold 1.00m shares worth US$2.7m. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Jason Industries Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Jason Industries. Overall, 2 insiders shelled out US$91k for shares in the company — and none sold. That shows some optimism about the company’s future.
Does Jason Industries 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. Jason Industries insiders own about US$7.5m worth of shares. That equates to 19% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Jason Industries Insider Transactions Indicate?
It is good to see recent purchasing. But we can’t say the same for the transactions over the last 12 months. We don’t take much heart from transactions by Jason Industries insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. Of course, the future is what matters most. So if you are interested in Jason Industries, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.