Trade Alert: The Non-Executive Director Of JD Sports Fashion plc (LON:JD.), Ian Dyson, Has Just Spent UK£68k Buying A Few More Shares
Whilst it may not be a huge deal, we thought it was good to see that the JD Sports Fashion plc (LON:JD.) Non-Executive Director, Ian Dyson, recently bought UK£68k worth of stock, for UK£1.71 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for JD Sports Fashion
JD Sports Fashion Insider Transactions Over The Last Year
The Chairman Andrew Higginson made the biggest insider purchase in the last 12 months. That single transaction was for UK£397k worth of shares at a price of UK£1.33 each. We do like to see buying, but this purchase was made at well below the current price of UK£1.64. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
JD Sports Fashion insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does JD Sports Fashion Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests JD Sports Fashion insiders own 0.01% of the company, worth about UK£855k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
What Might The Insider Transactions At JD Sports Fashion Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on JD Sports Fashion stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - JD Sports Fashion has 2 warning signs we think you should be aware of.
Of course JD Sports Fashion 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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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.
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