Don't Ignore The Fact That This Insider Just Sold Some Shares In SpartanNash Company (NASDAQ:SPTN)

By
Simply Wall St
Published
November 29, 2021
NasdaqGS:SPTN
Source: Shutterstock

We note that the SpartanNash Company (NASDAQ:SPTN) Independent Director, Frank Gambino, recently sold US$66k worth of stock for US$25.25 per share. On the bright side, that's just a small sale and only reduced their holding by 5.3%.

View our latest analysis for SpartanNash

SpartanNash Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, William Voss, for US$315k worth of shares, at about US$21.00 per share. That means that an insider was selling shares at slightly below the current price (US$24.60). 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. 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. It is worth noting that this sale was only 33% of William Voss's holding.

In the last year SpartanNash insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:SPTN Insider Trading Volume November 30th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that SpartanNash insiders own 2.9% of the company, worth about US$25m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About SpartanNash Insiders?

Insiders haven't bought SpartanNash stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that SpartanNash has 2 warning signs and it would be unwise to ignore them.

Of course SpartanNash 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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