This Insider Has Just Sold Shares In Chefs' Warehouse

We wouldn't blame The Chefs' Warehouse, Inc. (NASDAQ:CHEF) shareholders if they were a little worried about the fact that Christopher Pappas, the Founder recently netted about US$9.8m selling shares at an average price of US$48.85. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.4%.

View our latest analysis for Chefs' Warehouse

Chefs' Warehouse Insider Transactions Over The Last Year

Notably, that recent sale by Christopher Pappas is the biggest insider sale of Chefs' Warehouse 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 US$48.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Chefs' Warehouse didn't buy any shares in the last year. The chart below shows insider transactions (by companies and 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!

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).

Does Chefs' Warehouse Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Chefs' Warehouse insiders own 13% of the company, worth about US$242m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Chefs' Warehouse Tell Us?

Insiders sold Chefs' Warehouse shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Chefs' Warehouse is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Chefs' Warehouse is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.