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How Many Insiders Sold Pilgrim’s Pride Corporation (NASDAQ:PPC) Shares?

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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Pilgrim’s Pride Corporation (NASDAQ:PPC), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’

Check out our latest analysis for Pilgrim’s Pride

Pilgrim’s Pride Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when President William Lovette sold US$2.5m worth of shares at a price of US$25.36 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$20.31. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was William Lovette.

William Lovette divested 186.43k shares over the last 12 months at an average price of US$23.01. You can see the insider transactions (by 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!

NasdaqGS:PPC Recent Insider Trading, February 22nd 2019
NasdaqGS:PPC Recent Insider Trading, February 22nd 2019

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Pilgrim’s Pride insiders own 0.3% of the company, worth about US$14m. 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 Do The Pilgrim’s Pride Insider Transactions Indicate?

An insider sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Pilgrim’s Pride.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.

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