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Many The TJX Companies, Inc. (NYSE:TJX) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. 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, if numerous insiders are selling, shareholders should investigate more.
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$5.9m worth of shares at a price of US$91.13 each. That means that even when the share price was slightly below the current price of US$92.50, 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. It is worth noting that this sale was only 32% of Carol Meyrowitz's holding.
In the last year TJX Companies insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
TJX Companies Insiders Are Selling The Stock
The last three months saw significant insider selling at TJX Companies. In total, insiders sold US$10m 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
Many investors like to check how much of a company is owned by insiders. 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 TJX Companies insiders own 0.1% of the company, worth about US$151m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.