Who Has Been Selling JBG SMITH Properties (NYSE:JBGS) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in JBG SMITH Properties (NYSE:JBGS).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for JBG SMITH Properties

The Last 12 Months Of Insider Transactions At JBG SMITH Properties

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Vice Chairman of the Board of Trustees, Robert Stewart, sold US$2.9m worth of shares at a price of US$29.76 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$30.88. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 54% of Robert Stewart's stake. Robert Stewart was the only individual insider to sell over the last year. Notably Robert Stewart was also the biggest buyer, having purchased US$2.8m worth of shares.

Over the last year, we can see that insiders have bought 96.50k shares worth US$2.8m. But insiders sold 100.00k shares worth US$2.9m. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of JBG SMITH Properties

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that JBG SMITH Properties insiders own 1.4% of the company, worth about US$59m. 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 Does This Data Suggest About JBG SMITH Properties Insiders?

The fact that there have been no JBG SMITH Properties insider transactions recently certainly doesn't bother us. Still, the insider transactions at JBG SMITH Properties in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing JBG SMITH Properties. Every company has risks, and we've spotted 6 warning signs for JBG SMITH Properties (of which 2 are significant!) 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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