Have Jack Henry & Associates Insiders Been Selling Stock?

Some Jack Henry & Associates, Inc. (NASDAQ:JKHY) shareholders may be a little concerned to see that the Executive Chairman, David Foss, recently sold a substantial US$2.7m worth of stock at a price of US$181 per share. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Jack Henry & Associates

In fact, the recent sale by David Foss was the biggest sale of Jack Henry & Associates shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$183. 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. 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. It is worth noting that this sale was only 10% of David Foss's holding.

Jack Henry & Associates insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Jack Henry & Associates

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Jack Henry & Associates insiders own 0.6% of the company, worth about US$85m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Jack Henry & Associates Tell Us?

Insiders sold Jack Henry & Associates shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Jack Henry & Associates is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jack Henry & Associates. While conducting our analysis, we found that Jack Henry & Associates has 1 warning sign and it would be unwise to ignore this.

But note: Jack Henry & Associates 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.

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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.