Have insiders recently sold shares of Performance Food Group?

We would not blame Companies of the Performance Food Group (NYSE:PFGC) shareholders if they were a little concerned that George Holm, the Chairman and CEO, recently made about $4.7 million by selling shares at an average price of $73.53. However, that sale only represented 3.0% of their stake, so it arguably doesn’t say much about their belief.

Check out our latest analysis for Performance Food Group

Insider transactions of Performance Food Group in the last year

In fact, according to our records, George Holm’s recent sale was the largest sale of Performance Food Group shares by an insider in the last twelve months. This means that an insider sold shares below the current price (US$74.32). If an insider is selling below the current price, it suggests they thought that lower price was fair. This makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we cannot be sure if it means insiders think the shares are fully valued, so it is only a weak sign. We note that the largest single sale was just 3.0% of George Holm’s shares.

Over the last year, Performance Food Group insiders have not purchased any shares of the company. 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, just click on the chart below!

I’ll like Performance Food Group better if I see some big insider buying. While we wait, check out this free List of undervalued stocks and small cap stocks with significant recent insider buying.

Insider ownership

Looking at the total insider share holdings in a company can help you judge whether they are well aligned with common shareholders. We typically like to see relatively high levels of insider ownership. Performance Food Group insiders own about $234 million worth of shares (that’s 2.1% of the company). This kind of significant insider ownership generally increases the chance that the company is being run in the best interests of all shareholders.

What could the insider transactions at Performance Food Group tell us?

Insiders have recently sold Performance Food Group shares, but have not bought any. Looking at the last twelve months, our data shows no insider purchases. But it is good to see that Performance Food Group’s earnings are growing. It is good to see that many insiders own shares, but the insider sales make us cautious. While it is good to know what is happening with insiders’ shares and transactions, we make sure to also consider the risks associated with a stock before making an investment decision. For example: Performance Food Group has 2 warning signs In our opinion, you should be aware of this.

But please note: Performance Food Group may not be the best stock to buySo take a look at the free List of interesting companies with high return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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