Market cap

As the market capitalization of Jet2 plc (LON:JET2) fell by £262m, insiders who sold £22m worth of shares were able to recoup their losses

Insiders appear to have made the most of their holdings by selling for £22m of Jet2 plc (LON:JET2) stock at an average sale price of UK£11.00 over the past year. The company’s market value fell by £262million over the past week after the share price fell 13%, although insiders were able to play down their losses.

While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.

Check out our latest analysis for Jet2

The last 12 months of insider trading at Jet2

In the past twelve months, the biggest single insider sale was when executive chairman Philip Meeson sold £22 million worth of shares at £11.15 per share. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. The good news is that this big sale was well above the current price of £7.84 in the UK. It is therefore difficult to draw a firm conclusion. The only individual insider seller in the past year was Philip Meeson.

The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!

AIM:JET2 Insider Trading Volume July 8, 2022

I’d like Jet2 better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.

Insider ownership of Jet2

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. Jet2 insiders own around £345m of shares (or 20% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.

What could insider trading at Jet2 tell us?

There have been no insider trades in the last three months – that’s not saying much. While we’re happy with Jet2’s high insider ownership, we can’t say the same about the stock sale. In addition to knowing the insider trades taking place, it pays to identify the risks that Jet2 faces. During our analysis, we found that Jet2 has 1 warning sign and it would be unwise to ignore it.

Sure Jet2 may not be the best stock to buy. So you might want to see this free set of high quality companies.

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.

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.