Jackson Financial Insiders Sell US$2.6m Of Stock, Possibly Signalling Caution

Many Jackson Financial Inc. (NYSE:JXN) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Jackson Financial

The Last 12 Months Of Insider Transactions At Jackson Financial

The Executive VP & COO, Devkumar Ganguly, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$111 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$97.88. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 8.53k shares worth US$594k. On the other hand they divested 28.50k shares, for US$2.6m. All up, insiders sold more shares in Jackson Financial than they bought, over the last year. 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!

I will like Jackson Financial better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Jackson Financial Have Bought Stock Recently

It's good to see that Jackson Financial insiders have made notable investments in the company's shares. We can see that Independent Director Gregory Durant paid US$135k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Jackson Financial

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Jackson Financial insiders own 1.8% of the company, worth about US$126m. 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 Jackson Financial Tell Us?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Jackson Financial insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jackson Financial. For example - Jackson Financial has 1 warning sign we think you should be aware of.

But note: Jackson Financial 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.