Some Papa John's International, Inc. (NASDAQ:PZZA) shareholders may be a little concerned to see that insider Jack Swaysland recently sold a substantial US$532k worth of stock at a price of US$133 per share. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.
Papa John's International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Chairman of the Board, Jeffrey Smith, for US$13m worth of shares, at about US$122 per share. That means that an insider was selling shares at slightly below the current price (US$131). 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. 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. We note that the biggest single sale was only 20% of Jeffrey Smith's holding.
Insiders in Papa John's International 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: insiders have been buying them).
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Papa John's International insiders own 6.1% of the company, currently worth about US$288m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Papa John's International Insiders?
An insider sold Papa John's International shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Papa John's International. In terms of investment risks, we've identified 2 warning signs with Papa John's International and understanding these should be part of your investment process.
But note: Papa John's International 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, but not derivative transactions.
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.
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