We wouldn't blame Brinker International, Inc. (NYSE:EAT) shareholders if they were a little worried about the fact that Joseph Michael DePinto, the Independent Chairman of the Board recently netted about US$5.8m selling shares at an average price of US$230. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Brinker International
In fact, the recent sale by Joseph Michael DePinto was the biggest sale of Brinker International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$231). 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 24% of Joseph Michael DePinto's holding.
Brinker International insiders didn't buy any shares over the last year. 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, simply click on the graph below!
Check out our latest analysis for Brinker International
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Does Brinker International Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Brinker International insiders own about US$124m worth of shares (which is 1.3% 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 Brinker International Insider Transactions Indicate?
Insiders haven't bought Brinker International stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Brinker International is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Brinker International and we suggest you have a look.
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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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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.