Don’t Ignore The Fact That This Insider Just Sold Some Shares In SBA Communications Corporation (NASDAQ:SBAC)

We wouldn’t blame SBA Communications Corporation (NASDAQ:SBAC) shareholders if they were a little worried about the fact that Kurt Bagwell, the Executive VP & President of International recently netted about US$4.3m selling shares at an average price of US$255. That’s a big dump, and it decreased their holding size by 17.6%, which is notable but not too bad.

Check out our latest analysis for SBA Communications

The Last 12 Months Of Insider Transactions At SBA Communications

Over the last year, we can see that the biggest insider sale was by the Executive VP, Thomas Hunt, for US$14m worth of shares, at about US$173 per share. That means that an insider was selling shares at slightly below the current price (US$260). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was only 42.1% of Thomas Hunt’s holding.

In the last twelve months insiders netted US$48m for 257k shares sold. SBA Communications insiders didn’t buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:SBAC Recent Insider Trading, August 16th 2019
NasdaqGS:SBAC Recent Insider Trading, August 16th 2019

Insider Ownership of SBA Communications

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. SBA Communications insiders own about US$252m worth of shares (which is 0.9% of the company). 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 SBA Communications Insider Transactions Indicate?

Insiders sold SBA Communications shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. On the plus side, SBA Communications makes money, and is growing profits. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for SBA Communications.

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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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.