Have Village Super Market Insiders Been Selling Stock?

We note that the Village Super Market, Inc. (NASDAQ:VLGE.A) Principal Accounting Officer & Controller, Luigi Perri, recently sold US$76k worth of stock for US$30.52 per share. It wasn't a huge sale, but it did reduce their holding by 11%. This does not instill confidence.

Check out our latest analysis for Village Super Market

The Last 12 Months Of Insider Transactions At Village Super Market

Notably, that recent sale by Luigi Perri is the biggest insider sale of Village Super Market shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$31.68. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 11% of Luigi Perri's holding.

Village Super Market insiders didn't buy any shares over 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Village Super Market

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. Village Super Market insiders own 32% of the company, currently worth about US$151m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Village Super Market Insiders?

Insiders sold Village Super Market shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Village Super Market is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 1 warning sign for Village Super Market you should be aware of.

But note: Village Super Market may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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