We'd be surprised if Lamb Weston Holdings, Inc. (NYSE:LW) shareholders haven't noticed that the Senior VP & Chief Supply Chain Officer, Gerardo Scheufler, recently sold US$261k worth of stock at US$69.35 per share. That sale was 39% of their holding, so it does make us raise an eyebrow.
Lamb Weston Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Peter Bensen bought US$279k worth of shares at a price of US$55.75 per share. Even though the purchase was made at a significantly lower price than the recent price (US$68.93), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$567k for 9.65k shares. But insiders sold 3.77k shares worth US$261k. In total, Lamb Weston Holdings insiders bought more than they sold 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!
Lamb Weston Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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 appears that Lamb Weston Holdings insiders own 0.6% of the company, worth about US$55m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Lamb Weston Holdings Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Lamb Weston Holdings, in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lamb Weston Holdings. To that end, you should learn about the 6 warning signs we've spotted with Lamb Weston Holdings (including 1 which doesn't sit too well with us).
But note: Lamb Weston Holdings 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, but not derivative transactions.
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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.