Yahoo Finance Did Sprouts Farmers Market, Inc. (NASDAQ:SFM) Insiders Buy Up More Shares?
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Sprouts Farmers Market, Inc. (NASDAQ:SFM).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. 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 Sprouts Farmers Market
The Last 12 Months Of Insider Transactions At Sprouts Farmers Market
Director Shon Boney made the biggest insider purchase in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$22.83 each. So it's clear an insider wanted to buy, even at a higher price. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
In the last twelve months insiders purchased 109.50k shares for US$2.5m. But they sold 65.42k for US$1.5m. Overall, Sprouts Farmers Market insiders were net buyers last year. They paid about US$22.94 on average. I'd consider this a positive as it suggests insiders see value at around the current price, which is US$21.28. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Sprouts Farmers Market Have Sold Stock Recently
The last three months saw significant insider selling at Sprouts Farmers Market. In total, insiders sold US$1.2m 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 Sprouts Farmers Market
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.6% of Sprouts Farmers Market shares, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Sprouts Farmers Market Tell Us?
Insiders sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. Of course, the future is what matters most. So if you are interested in Sprouts Farmers Market, you should check out this free report on analyst forecasts for the company.
But note: Sprouts Farmers Market may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
