We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Jones Lang LaSalle Incorporated (NYSE:JLL).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise’.
Check out our latest analysis for Jones Lang LaSalle
The Last 12 Months Of Insider Transactions At Jones Lang LaSalle
The insider, Jeff Jacobson, made the biggest insider sale in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$157 each. That means that even when the share price was below the current price of US$203, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 13% of Jeff Jacobson’s stake.
Jones Lang LaSalle insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
NYSE:JLL Insider Trading Volume June 7th 2021
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Jones Lang LaSalle Have Sold Stock Recently
The last three months saw significant insider selling at Jones Lang LaSalle. In total, insider Jeff Jacobson dumped US$520k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Insider Ownership of Jones Lang LaSalle
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Jones Lang LaSalle insiders own about US$79m worth of shares. That equates to 0.8% 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.
So What Does This Data Suggest About Jones Lang LaSalle Insiders?
An insider hasn’t bought Jones Lang LaSalle stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. You’d be interested to know, that we found 1 warning sign for Jones Lang LaSalle and we suggest you have a look.
Of course Jones Lang LaSalle may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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