We wouldn't blame Jefferson Capital, Inc. (NASDAQ:JCAP) shareholders if they were a little worried about the fact that Mark Zellmann, the President of U.S. Business Lines recently netted about US$1.3m selling shares at an average price of US$23.75. However, that sale only accounted for 8.1% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Jefferson Capital

In the last twelve months, the biggest single sale by an insider was when the President, David Burton, sold US$7.9m worth of shares at a price of US$20.50 per share. That means that even when the share price was below the current price of US$22.29, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 10% of David Burton's holding.

Insiders in Jefferson Capital didn't buy any shares in the last year. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Jefferson Capital insiders own about US$125m worth of shares (which is 9.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Jefferson Capital Insider Transactions Indicate?

An insider sold Jefferson Capital shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jefferson Capital. Be aware that Jefferson Capital is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

But note: Jefferson Capital may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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.