Shareholders Can't Ignore US$3.8m Of Sales By J.Jill Insiders

Even though J.Jill, Inc. (NYSE:JILL) stock gained 12% last week, insiders who sold US$3.8m worth of stock over the past year are probably better off. Selling at an average price of US$30.20, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

We've discovered 2 warning signs about J.Jill. View them for free.

The Last 12 Months Of Insider Transactions At J.Jill

The insider, Claire Spofford, made the biggest insider sale in the last 12 months. That single transaction was for US$988k worth of shares at a price of US$37.38 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$16.96. So it may not shed much light on insider confidence at current levels.

In the last year J.Jill insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for J.Jill

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

Does J.Jill Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.5% of J.Jill shares, worth about US$11m. 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 J.Jill Insiders?

It doesn't really mean much that no insider has traded J.Jill shares in the last quarter. Still, the insider transactions at J.Jill in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for J.Jill (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

But note: J.Jill 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.