Anyone interested in Ingles Markets, Incorporated (NASDAQ:IMKT.A) should probably be aware that the Director, Laura Sharp, recently divested US$421k worth of shares in the company, at an average price of US$70.25 each. That sale was 29% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Ingles Markets
In fact, the recent sale by Director Laura Sharp was not their only sale of Ingles Markets shares this year. Earlier in the year, they fetched US$75.01 per share in a -US$600k sale. So what is clear is that an insider saw fit to sell at around the current price of US$69.73. 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.
Laura Sharp ditched 67.00k shares over the year. The average price per share was US$75.40. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. It's great to see that Ingles Markets insiders own 22% of the company, worth about US$294m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Ingles Markets Insiders?
An insider hasn't bought Ingles Markets 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. 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. 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. While conducting our analysis, we found that Ingles Markets has 1 warning sign and it would be unwise to ignore this.
But note: Ingles Markets 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com