It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Jones Lang LaSalle Incorporated (NYSE:JLL).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Jones Lang LaSalle Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by CEO of Americas Business Segment & Member of Global Executive Board Gregory O’Brien for US$1.8m worth of shares, at about US$169 per share. That means that an insider was selling shares at around the current price of US$154. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment.
Over the last year, we note insiders sold 10.64k shares worth US$1.8m. In total, Jones Lang LaSalle insiders sold more than they bought over the last year. The average sell price was around US$169. It’s not particularly great to see insiders were selling shares around current prices. Since insiders sell for many reasons, we wouldn’t put too much weight on it. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Jones Lang LaSalle better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Jones Lang LaSalle Boast High 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. Insiders own 0.7% of Jones Lang LaSalle shares, worth about US$46m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Jones Lang LaSalle Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Jones Lang LaSalle shares in the last quarter. Our analysis of Jones Lang LaSalle insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Jones Lang LaSalle.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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