Insiders seem to have made the most of their holdings by selling US$666k worth of Target Corporation (NYSE:TGT) stock at an average sell price of US$202 during the past year. The company's market valuation decreased by US$5.3b after the stock price dropped 7.0% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Target Insider Transactions Over The Last Year
The insider, Robert Harrison, made the biggest insider sale in the last 12 months. That single transaction was for US$453k worth of shares at a price of US$218 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$153. So it is hard to draw any strong conclusion from it.
Insiders in Target didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Target better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Target Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Target shares. In total, Chief Accounting Officer Matthew Liegel dumped US$213k 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Target insiders own 0.2% of the company, currently worth about US$166m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Target Tell Us?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Target. Case in point: We've spotted 4 warning signs for Target you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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.
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