Have Insiders Sold Jefferies Financial Group Shares Recently?

We wouldn't blame Jefferies Financial Group Inc. (NYSE:JEF) shareholders if they were a little worried about the fact that Richard Handler, the CEO & Director recently netted about US$65m selling shares at an average price of US$43.50. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.2%.

Check out our latest analysis for Jefferies Financial Group

The Last 12 Months Of Insider Transactions At Jefferies Financial Group

In fact, the recent sale by Richard Handler was the biggest sale of Jefferies Financial Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$43.56, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was only 8.2% of Richard Handler's holding.

In the last year Jefferies Financial Group insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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: insiders have been buying them).

Does Jefferies Financial Group Boast High 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. We usually like to see fairly high levels of insider ownership. Jefferies Financial Group insiders own about US$2.0b worth of shares (which is 22% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Jefferies Financial Group Insiders?

An insider hasn't bought Jefferies Financial Group 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Jefferies Financial Group (of which 1 is a bit unpleasant!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.