Insiders At Sun Country Airlines Holdings Sold US$2.6m In Stock, Alluding To Potential Weakness

Many Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

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 Sun Country Airlines Holdings

The Last 12 Months Of Insider Transactions At Sun Country Airlines Holdings

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Jude Bricker, for US$1.6m worth of shares, at about US$19.70 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$14.15. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Sun Country Airlines Holdings shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insiders At Sun Country Airlines Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of Sun Country Airlines Holdings shares. In total, insiders sold US$110k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Sun Country Airlines Holdings

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. Insiders own 0.8% of Sun Country Airlines Holdings shares, worth about US$6.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Sun Country Airlines Holdings Insider Transactions Indicate?

Insiders 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. On the plus side, Sun Country Airlines Holdings makes money, and is growing profits. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. 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. While conducting our analysis, we found that Sun Country Airlines Holdings has 2 warning signs and it would be unwise to ignore them.

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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.