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A JB Hi-Fi Limited (ASX:JBH) insider increased their holdings last year

From what we can see, insiders were net buyers in JB Hi-Fi Limited's (ASX:JBH ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for JB Hi-Fi

The Last 12 Months Of Insider Transactions At JB Hi-Fi

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Geoffrey Roberts for AU$141k worth of shares, at about AU$47.04 per share. We do like to see buying, but this purchase was made at well below the current price of AU$52.97. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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insider-trading-volume

JB Hi-Fi is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of JB Hi-Fi

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. We usually like to see fairly high levels of insider ownership. Insiders own 0.9% of JB Hi-Fi shares, worth about AU$50m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About JB Hi-Fi Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think JB Hi-Fi insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for JB Hi-Fi (1 is potentially serious!) that we believe deserve your full attention.

Of course JB Hi-Fi 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, but not derivative transactions.

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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.