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Insiders who bought JD Sports Fashion plc (LON:JD.) stock in the last 12 months recover some losses, but still down UK£72k

Some of the losses seen by insiders who purchased UK£422k worth of JD Sports Fashion plc (LON:JD.) shares over the past year were recovered after the stock increased by 7.7% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling UK£72k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for JD Sports Fashion

JD Sports Fashion Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman Andrew Higginson bought UK£397k worth of shares at a price of UK£1.33 per share. That means that an insider was happy to buy shares at above the current price of UK£1.08. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While JD Sports Fashion insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At JD Sports Fashion Have Bought Stock Recently

We saw some JD Sports Fashion insider buying shares in the last three months. Non-Executive Director Andy Long purchased UK£24k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at JD Sports Fashion, though insiders do hold about UK£360k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. We might be missing something but that seems like very low insider ownership.

So What Do The JD Sports Fashion Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if JD Sports Fashion insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing JD Sports Fashion. For example - JD Sports Fashion has 2 warning signs we think 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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