Have Insiders Sold Avery Dennison Shares Recently?

Some Avery Dennison Corporation (NYSE:AVY) shareholders may be a little concerned to see that the President of Solutions Group, Francisco Melo, recently sold a substantial US$851k worth of stock at a price of US$227 per share. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.

View our latest analysis for Avery Dennison

The Last 12 Months Of Insider Transactions At Avery Dennison

In the last twelve months, the biggest single sale by an insider was when the insider, Julia Stewart, sold US$1.1m worth of shares at a price of US$203 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$229. 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. This single sale was just 33% of Julia Stewart's stake.

Avery Dennison insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Avery Dennison Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Avery Dennison insiders own 0.8% of the company, worth about US$147m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Avery Dennison Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avery Dennison. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Avery Dennison.

Of course Avery Dennison may not be the best stock to buy. So you may wish to see this free collection of high quality 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.