Have Jabil Insiders Been Selling Stock?

We wouldn't blame Jabil Inc. (NYSE:JBL) shareholders if they were a little worried about the fact that Steven Borges, a company insider, recently netted about US$753k selling shares at an average price of US$151. However, that sale only accounted for 3.8% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Jabil

Jabil Insider Transactions Over The Last Year

The Executive Chairman, Mark Mondello, made the biggest insider sale in the last 12 months. That single transaction was for US$6.3m worth of shares at a price of US$127 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$154. 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 just 2.7% of Mark Mondello's stake.

In the last year Jabil insiders didn't buy any company stock. 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!

I will like Jabil better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Jabil

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Jabil insiders own 3.3% of the company, currently worth about US$561m based on the recent share price. 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 Jabil Insider Transactions Indicate?

Insiders sold Jabil shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Jabil makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Jabil has 4 warning signs (and 1 which doesn't sit too well with us) we think 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 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.