This Insider Has Just Sold Shares In Johnson Outdoors Inc. (NASDAQ:JOUT)

Anyone interested in Johnson Outdoors Inc. (NASDAQ:JOUT) should probably be aware that the Independent Director, John Fahey, recently divested US$189k worth of shares in the company, at an average price of US$98.90 each. On the bright side, that sale was only 8.7% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Johnson Outdoors

Johnson Outdoors Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Terry London, for US$528k worth of shares, at about US$87.83 per share. That means that even when the share price was below the current price of US$98.60, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 26% of Terry London's holding.

Insiders in Johnson Outdoors didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership of Johnson Outdoors

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. Johnson Outdoors insiders own 18% of the company, currently worth about US$178m 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 Do The Johnson Outdoors Insider Transactions Indicate?

Insiders sold Johnson Outdoors shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Johnson Outdoors makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Johnson Outdoors 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, but not derivative transactions.

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