Have Simply Good Foods Insiders Been Selling Stock?

We wouldn't blame The Simply Good Foods Company (NASDAQ:SMPL) shareholders if they were a little worried about the fact that Brian Ratzan, the Independent Director recently netted about US$1.2m selling shares at an average price of US$36.29. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.5%.

View our latest analysis for Simply Good Foods

Simply Good Foods Insider Transactions Over The Last Year

Notably, that recent sale by Brian Ratzan is the biggest insider sale of Simply Good Foods shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$36.88, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 1.5% of Brian Ratzan's holding.

In the last year Simply Good Foods insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Simply Good Foods Boast High 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. It's great to see that Simply Good Foods insiders own 8.5% of the company, worth about US$309m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Simply Good Foods Insiders?

An insider sold Simply Good Foods shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Simply Good Foods makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Simply Good Foods. While conducting our analysis, we found that Simply Good Foods has 1 warning sign and it would be unwise to ignore it.

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.