This BJ's Wholesale Club Holdings Insider Reduced Their Stake By 14% \

Viewing insider transactions for BJ's Wholesale Club Holdings, Inc.'s (NYSE:BJ ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for BJ's Wholesale Club Holdings

The Last 12 Months Of Insider Transactions At BJ's Wholesale Club Holdings

The Executive VP & COO, Jeff Desroches, made the biggest insider sale in the last 12 months. That single transaction was for US$999k worth of shares at a price of US$67.22 each. That means that even when the share price was below the current price of US$70.80, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Jeff Desroches's stake. Jeff Desroches was the only individual insider to sell over 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!

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

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. BJ's Wholesale Club Holdings insiders own about US$100m worth of shares. That equates to 1.0% of the company. 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 BJ's Wholesale Club Holdings Insiders?

It doesn't really mean much that no insider has traded BJ's Wholesale Club Holdings shares in the last quarter. We don't take much encouragement from the transactions by BJ's Wholesale Club Holdings insiders. But it's good to see that insiders own shares in 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. For example - BJ's Wholesale Club Holdings has 1 warning sign we think you should be aware of.

Of course BJ's Wholesale Club Holdings 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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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.