This Insider Has Just Sold Shares In Fast Retailing
Some Fast Retailing Co., Ltd. (TSE:9983) shareholders may be a little concerned to see that the Chairman, Tadashi Yanai, recently sold a substantial JP¥251b worth of stock at a price of JP¥78,871 per share. However, that sale only accounted for 4.7% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Fast Retailing
In fact, the recent sale by Tadashi Yanai was the biggest sale of Fast Retailing shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of JP¥73,510. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Tadashi Yanai sold a total of 9.54m shares over the year at an average price of JP¥71,618. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Fast Retailing
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Insider Ownership Of Fast Retailing
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Fast Retailing insiders own 40% of the company, worth about JP¥8.9t. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Fast Retailing Tell Us?
An insider sold Fast Retailing shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Fast Retailing is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Fast Retailing you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.