We wouldn't blame Jefferies Financial Group Inc. (NYSE:JEF) shareholders if they were a little worried about the fact that Brian Friedman, the President & Director recently netted about US$13m selling shares at an average price of US$43.82. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.5%.
The Last 12 Months Of Insider Transactions At Jefferies Financial Group
Notably, that recent sale by Brian Friedman is the biggest insider sale of Jefferies Financial Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$43.36. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In total, Jefferies Financial Group insiders sold more than they bought over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Jefferies Financial Group insiders own about US$2.1b worth of shares (which is 20% 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 Does This Data Suggest About Jefferies Financial Group Insiders?
Insiders haven't bought Jefferies Financial Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Jefferies Financial Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Jefferies Financial Group you should be aware of, and 2 of these are a bit concerning.
But note: Jefferies Financial Group 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.
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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