One Nordstrom, Inc. (NYSE:JWN) insider reduced their stake by 7.0% in the previous year

By
Simply Wall St
Published
August 16, 2021
NYSE:JWN
Source: Shutterstock

Insiders were net sellers of Nordstrom, Inc.'s (NYSE:JWN ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Nordstrom

Nordstrom Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer, Kenneth Worzel, sold US$312k worth of shares at a price of US$31.96 per share. That means that even when the share price was below the current price of US$35.15, 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 just 7.0% of Kenneth Worzel's stake. The only individual insider seller over the last year was Kenneth Worzel.

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!

insider-trading-volume
NYSE:JWN Insider Trading Volume August 17th 2021

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

Does Nordstrom 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Nordstrom insiders own 30% of the company, currently worth about US$1.7b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Nordstrom Tell Us?

It doesn't really mean much that no insider has traded Nordstrom shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Nordstrom insiders selling. 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. At Simply Wall St, we found 1 warning sign for Nordstrom that deserve your attention before buying any shares.

But note: Nordstrom 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, but not derivative transactions.

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