Some Jabil Inc. (NYSE:JBL) shareholders may be a little concerned to see that the Director, Martha Brooks, recently sold a whopping US$751k worth of stock at a price of US$35.58 per share. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.
Jabil Insider Transactions Over The Last Year
Notably, that recent sale by Martha Brooks is the biggest insider sale of Jabil shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$35.51. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders netted US$1.8m for 57600 shares sold. Jabil insiders didn't buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Jabil better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Jabil
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jabil insiders own about US$153m worth of shares (which is 2.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Jabil Insider Transactions Indicate?
An insider hasn't bought Jabil stock in the last three months, but there was some selling. 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. 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. Of course, the future is what matters most. So if you are interested in Jabil, you should check out this free report on analyst forecasts for the company.
Of course Jabil may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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