In This Article:
Over the past year, many The TJX Companies, Inc. (NYSE:TJX) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for TJX Companies
The Last 12 Months Of Insider Transactions At TJX Companies
The Executive Chairman, Carol Meyrowitz, made the biggest insider sale in the last 12 months. That single transaction was for US$4.8m worth of shares at a price of US$67.62 each. That means that even when the share price was below the current price of US$80.19, 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. 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. We note that the biggest single sale was only 21% of Carol Meyrowitz's holding.
All up, insiders sold more shares in TJX Companies than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like TJX Companies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
TJX Companies Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at TJX Companies. In total, insiders sold US$8.8m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of TJX Companies
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. TJX Companies insiders own 0.2% of the company, currently worth about US$154m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.