We would be surprised if New Jersey Resource Company (NYSE:NJR) Shareholders didn’t notice New Jersey Natural Gas Senior Vice President and COO Patrick Migliaccio recently sold US$122,000 worth of stock at US$45.25 per share. This sale represented 12% of their stake, so that raises our eyebrows.
Check out our latest analysis for New Jersey resources
Insider trades in New Jersey Resources over the past year
Insider Timothy Shea had the biggest insider sale in the last 12 months. This single transaction was for US$414,000 of shares at a price of US$41.35 each. Clearly, then, an insider wanted to take money off the table, even below the current price of US$46.18. We generally consider it negative if insiders sold, especially if they did below the current price, as this implies that they considered a lower price to be reasonable. Please note, however, that sellers may have various reasons for selling, so we don’t know for sure what they think of the stock price. We note that the largest sale involved only 25% of Timothy Shea’s stake.
In total, New Jersey Resources insiders have sold more than they bought over the past year. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. It appears New Jersey Resources insiders own 0.5% of the company, which is worth around $23 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what do New Jersey Resources insider trading indicate?
An insider recently sold shares, but did not buy. Despite some insider buying, the longer-term picture doesn’t make us much more positive. Although the insiders own shares, they don’t own a whole lot and they sold. We would exercise caution before purchasing! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. At Simply Wall St, we found that New Jersey Resources has 4 warning signs (2 essentials!) which deserve your attention before going further in your analysis.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, which have a HIGH return on equity and a low indebtedness.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.