Many last year PepsiCo, Inc. (NASDAQ:PEP) insiders sold a significant stake in the company, which may have caught shareholders’ attention. When evaluating insider transactions, it is usually more helpful to know whether insiders are buying, as insider sales can have various explanations. However, shareholders should take a closer look if multiple insiders sell shares over a period of time.
While insider transactions aren’t the most important thing when it comes to long-term investing, we still think it’s perfectly logical to keep an eye on insider activity.
Check out our latest analysis for PepsiCo
PepsiCo insider transactions in the last year
Independent director Robert Pohlad made the biggest insider sale of the last 12 months. This single transaction involved $13 million worth of shares at a price of $174 each. So it’s clear that an insider saw fit to sell at the current price of $168. While insider selling is negative, it’s even more negative for us if the shares are sold at a lower price. Given that the sale took place at roughly current prices, we’re a little cautious, but it’s hardly a major concern.
PepsiCo insiders haven’t bought any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the graphic, you will see all individual transactions, including share price, individual transaction and date!
For those who like to find successful investments The free A list of growing companies with recent insider purchases might be just the ticket.
Insiders at PepsiCo recently sold shares
There was significant insider selling of PepsiCo shares in the last quarter. Specifically, insider Hugh Johnston sold $8.1 million worth of shares during that time, and we didn’t see any purchases. Overall, this makes us a bit cautious, but that’s not the be-all and end-all.
Insider ownership of PepsiCo
Many investors like to check how much of a company is owned by insiders. We typically like to see relatively high levels of insider ownership. It’s great to see that PepsiCo insiders own 0.1% of the company, worth about US$323m. Most shareholders would be happy to see this kind of insider ownership because it suggests management’s incentives are well aligned with those of other shareholders.
What could insider transactions at PepsiCo tell us?
An insider recently sold shares, but they didn’t buy. For the last twelve months, our data shows no insider purchases. It’s good to see high insider ownership, but insider selling makes us cautious. So these insider transactions can help us form a thesis about the stock, but it’s also worth knowing the risks this company faces. For example – PepsiCo has 3 warning signs We think you should be aware of this.
Naturally, You might find a fantastic investment if you look elsewhere. So take a look free List of interesting companies.
Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.