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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. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for TJX Companies
The Last 12 Months Of Insider Transactions At TJX Companies
In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Carol Meyrowitz, sold US$4.8m worth of shares at a price of US$67.62 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$77.76. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 21% of Carol Meyrowitz's holding.
TJX Companies insiders didn't buy any shares 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
TJX Companies Insiders Are Selling The Stock
The last quarter saw substantial insider selling of TJX Companies shares. Specifically, Senior Executive Vice President of Finance Scott Goldenberg ditched US$2.1m 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. TJX Companies insiders own about US$91m worth of shares. That equates to 0.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.