J. M. Smucker Chief Financial Officer Tucker Marshall Sells 25% Of Holding

Some The J. M. Smucker Company (NYSE:SJM) shareholders may be a little concerned to see that the Chief Financial Officer, Tucker Marshall, recently sold a substantial US$570k worth of stock at a price of US$113 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

View our latest analysis for J. M. Smucker

The Last 12 Months Of Insider Transactions At J. M. Smucker

Over the last year, we can see that the biggest insider sale was by the CEO, President & Chairman, Mark Smucker, for US$1.1m worth of shares, at about US$110 per share. That means that an insider was selling shares at below the current price (US$112). 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. This single sale was just 4.4% of Mark Smucker's stake.

In total, J. M. Smucker insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. J. M. Smucker insiders own about US$414m worth of shares (which is 3.5% of the company). 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 Do The J. M. Smucker Insider Transactions Indicate?

Unfortunately, there has been more insider selling of J. M. Smucker stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with J. M. Smucker (including 1 which shouldn't be ignored).

But note: J. M. Smucker 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.