Human resources

Jed Milstein is the Senior Vice President and Chief Human Resources Officer of Asbury Automotive Group, Inc. (NYSE:ABG) and they just sold 40% of their stock

We wouldn’t blame Asbury Automotive Group, Inc. (NYSE:ABG) shareholders if they were a bit concerned that Jed Milstein, the senior vice president and chief human resources officer, recently made around US$808,000 by selling shares at an average price of US$195. . It’s a big divestment, and it reduced the size of their operation by 40%, which is remarkable but not too bad.

See our latest analysis for Asbury Automotive Group

Asbury Automotive Group insider trading over the past year

Chairman David Hult made the biggest insider sell in the past 12 months. This single transaction was for $4.9 million worth of shares at a price of $199 each. So we know that an insider sold shares at around the current share price of US$192. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. We note that this sale took place around the current price, so it is not a major concern, although it is hardly a good sign.

Asbury Automotive Group insiders have not purchased any shares in the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!

NYSE: ABG Insider Trading Volume May 7, 2022

If you’re like me, then you do not want to miss this free list of growing companies insiders are buying.

Insider ownership

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders own 0.7% of Asbury Automotive Group shares, worth approximately $28 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

What could Asbury Automotive Group’s insider trading tell us?

Insiders recently sold shares of Asbury Automotive Group, but did not buy any. And there have been no purchases to comfort us in the past year. But it’s good to see that Asbury Automotive Group is increasing its profits. Insiders hold shares, but we remain quite cautious, given the history of sales. We are in no rush to buy! While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Know that Asbury Automotive Group is showing 4 warning signs in our investment analysisand 1 of them should not be ignored…

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.