We'd be surprised if Jack Henry & Associates, Inc. (NASDAQ:JKHY) shareholders haven't noticed that the VP & GM of JHA Payment Solutions, Gregory Adelson, recently sold US$115k worth of stock at US$147 per share. On the bright side, that sale was only 9.6% of their holding, so we doubt it's very meaningful, on its own.
Jack Henry & Associates Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman of the Board, John Prim, for US$999k worth of shares, at about US$132 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$149. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 3.4% of John Prim's stake.
We note that in the last year insiders divested 24430 shares for a total of US$3.3m. Jack Henry & Associates insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Jack Henry & Associates 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 Jack Henry & Associates
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. We usually like to see fairly high levels of insider ownership. Jack Henry & Associates insiders own about US$94m worth of shares. That equates to 0.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Jack Henry & Associates Insider Transactions Indicate?
Insiders haven't bought Jack Henry & Associates 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. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Jack Henry & Associates 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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