Have TJX Companies Insiders Been Selling Stock?

We wouldn't blame The TJX Companies, Inc. (NYSE:TJX) shareholders if they were a little worried about the fact that Ernie Herrman, the CEO, President & Director recently netted about US$2.4m selling shares at an average price of US$120. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.5%.

See our latest analysis for TJX Companies

The Last 12 Months Of Insider Transactions At TJX Companies

The Executive Chairman, Carol Meyrowitz, made the biggest insider sale in the last 12 months. That single transaction was for US$5.9m worth of shares at a price of US$91.13 each. That means that an insider was selling shares at slightly below the current price (US$120). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 32% of Carol Meyrowitz's stake.

TJX Companies insiders didn't buy any shares over the last year. 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!

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Insider Ownership Of TJX Companies

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that TJX Companies insiders own 0.1% of the company, worth about US$172m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The TJX Companies Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that TJX Companies is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for TJX Companies you should be aware of.

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.