We wouldn't blame J&J Snack Foods Corp. (NASDAQ:JJSF) shareholders if they were a little worried about the fact that Marjorie Roshkoff, the VP, Corporate Secretary recently netted about US$564k selling shares at an average price of US$141. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.1%.
J&J Snack Foods Insider Transactions Over The Last Year
In fact, the recent sale by Marjorie Roshkoff was the biggest sale of J&J Snack Foods shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$158). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 0.1% of Marjorie Roshkoff's holding.
Marjorie Roshkoff ditched 4.77k shares over the year. The average price per share was US$141. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. J&J Snack Foods insiders own about US$1.2b worth of shares (which is 39% of the company). 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 J&J Snack Foods Tell Us?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since J&J Snack Foods is profitable and growing, we're not too worried by this. 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. While we like knowing 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, J&J Snack Foods has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
But note: J&J Snack Foods 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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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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