This Insider Has Just Sold Shares In Sweetgreen

We'd be surprised if Sweetgreen, Inc. (NYSE:SG) shareholders haven't noticed that the Chief Financial Officer, Mitch Reback, recently sold US$335k worth of stock at US$36.61 per share. On the bright side, that sale was only 1.3% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Sweetgreen

The Last 12 Months Of Insider Transactions At Sweetgreen

Over the last year, we can see that the biggest insider sale was by the Independent Director, Youngme Moon, for US$2.2m worth of shares, at about US$31.77 per share. That means that an insider was selling shares at slightly below the current price (US$35.06). 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. This single sale was 51% of Youngme Moon's stake.

Sweetgreen 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

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. Sweetgreen insiders own 13% of the company, currently worth about US$522m 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.

What Might The Insider Transactions At Sweetgreen Tell Us?

Insiders haven't bought Sweetgreen stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. 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. Every company has risks, and we've spotted 3 warning signs for Sweetgreen you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.