Have Insiders Sold AutoNation Shares Recently?

AutoNation, Inc. +1.47% Post

AutoNation, Inc.

AN

154.60

154.60

+1.47%

0.00% Post

We wouldn't blame AutoNation, Inc. (NYSE:AN) shareholders if they were a little worried about the fact that Edward Lampert, a company insider, recently netted about US$23m selling shares at an average price of US$152. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.1%.

Check out our latest analysis for AutoNation

AutoNation Insider Transactions Over The Last Year

Notably, that recent sale by Edward Lampert is the biggest insider sale of AutoNation shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$152. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, AutoNation insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:AN Insider Trading Volume December 29th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that AutoNation insiders own 12% of the company, worth about US$781m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The AutoNation Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. While we like knowing 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. Our analysis shows 3 warning signs for AutoNation (2 shouldn't be ignored!) and we strongly recommend you look at them before investing.

Of course AutoNation 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.

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