Some Johnson & Johnson (NYSE:JNJ) shareholders may be a little concerned to see that the CEO & Chairman, Joaquin Duato, recently sold a substantial US$13m worth of stock at a price of US$258 per share. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Johnson & Johnson

In fact, the recent sale by CEO & Chairman Joaquin Duato was not their only sale of Johnson & Johnson shares this year. Earlier in the year, they fetched US$221 per share in a -US$22m sale. That means that an insider was selling shares at slightly below the current price (US$259). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 25% of Joaquin Duato's holding.

In total, Johnson & Johnson insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Johnson & Johnson insiders own about US$229m worth of shares (which is 0.04% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Johnson & Johnson Tell Us?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

Of course Johnson & Johnson may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.