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In the last year, many JPMorgan Chase & Co. (NYSE:JPM) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for JPMorgan Chase
JPMorgan Chase Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, James Dimon, sold US$150m worth of shares at a price of US$183 per share. That means that even when the share price was below the current price of US$243, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.6% of James Dimon's holding.
JPMorgan Chase insiders didn't buy any shares over the last year. 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!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does JPMorgan Chase Boast High Insider Ownership?
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. It's great to see that JPMorgan Chase insiders own 0.4% of the company, worth about US$2.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At JPMorgan Chase Tell Us?
It doesn't really mean much that no insider has traded JPMorgan Chase shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the JPMorgan Chase insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing JPMorgan Chase. Case in point: We've spotted 1 warning sign for JPMorgan Chase you should be aware of.