Have Target Insiders Been Selling Stock?

Some Target Corporation (NYSE:TGT) shareholders may be a little concerned to see that the Chairman of the Board & CEO, Brian Cornell, recently sold a substantial US$5.1m worth of stock at a price of US$113 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Target

The Last 12 Months Of Insider Transactions At Target

Notably, that recent sale by Chairman of the Board & CEO Brian Cornell was not the only time they sold Target shares this year. Earlier in the year, they fetched US$159 per share in a -US$7.1m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$105. So it may not shed much light on insider confidence at current levels.

Insiders in Target 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!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Target insiders own about US$85m worth of shares. That equates to 0.2% 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 Do The Target Insider Transactions Indicate?

Insiders sold Target shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Target. In terms of investment risks, we've identified 2 warning signs with Target and understanding them should be part of your investment process.

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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.

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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.