FedEx Insiders Sold US$3.1m Of Shares Suggesting Hesitancy

Many FedEx Corporation (NYSE:FDX) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for FedEx

FedEx Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Mark Allen, for US$1.5m worth of shares, at about US$297 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$268). So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$366k for 1.33k shares. But they sold 10.22k shares for US$3.1m. In total, FedEx insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At FedEx Have Bought Stock Recently

Over the last quarter, FedEx insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$366k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of FedEx

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. FedEx insiders own 8.3% of the company, currently worth about US$5.3b 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 FedEx Tell Us?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that FedEx insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FedEx. At Simply Wall St, we found 1 warning sign for FedEx that deserve your attention before buying any shares.

But note: FedEx 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.