Trade Alert: Senior VP & Chief Human Resources Officer Of Avery Dennison Deena Baker-Nel Has Sold Stock

Some Avery Dennison Corporation (NYSE:AVY) shareholders may be a little concerned to see that the Senior VP & Chief Human Resources Officer, Deena Baker-Nel, recently sold a substantial US$990k worth of stock at a price of US$198 per share. That diminished their holding by a very significant 62%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Avery Dennison

The Last 12 Months Of Insider Transactions At Avery Dennison

The Independent Director, Andres Lopez, 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$182 each. That means that even when the share price was below the current price of US$203, 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. This single sale was 82% of Andres Lopez's stake.

In the last year Avery Dennison insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Avery Dennison insiders own about US$123m worth of shares (which is 0.8% 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 Avery Dennison Insider Transactions Indicate?

An insider sold Avery Dennison shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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 Avery Dennison. Every company has risks, and we've spotted 2 warning signs for Avery Dennison you should know about.

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.