Don’t Ignore The Fact That This Insider Just Sold Some Shares In Tanger Factory Outlet Centers, Inc. (NYSE:SKT)

Anyone interested in Tanger Factory Outlet Centers, Inc. (NYSE:SKT) should probably be aware that the Senior Vice President of Construction & Development, Charles Worsham, recently divested US$112k worth of shares in the company, at an average price of US$8.96 each. The eyebrow raising move amounted to a reduction of 25% in their holding.

See our latest analysis for Tanger Factory Outlet Centers

The Last 12 Months Of Insider Transactions At Tanger Factory Outlet Centers

In the last twelve months, the biggest single sale by an insider was when the insider, Virginia Summerell, sold US$230k worth of shares at a price of US$18.25 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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$8.93. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 27.00k shares for US$391k. But they sold 49812 shares for US$759k. Over the last year we saw more insider selling of Tanger Factory Outlet Centers shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:SKT Recent Insider Trading, March 15th 2020
NYSE:SKT Recent Insider Trading, March 15th 2020

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

Does Tanger Factory Outlet Centers Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tanger Factory Outlet Centers insiders own about US$20m worth of shares. That equates to 2.4% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Tanger Factory Outlet Centers Insiders?

Insiders sold Tanger Factory Outlet Centers shares recently, but they didn’t buy any. And our longer term analysis of insider transactions didn’t bring confidence, either. But it is good to see that Tanger Factory Outlet Centers is growing earnings. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! 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. Our analysis shows 2 warning signs for Tanger Factory Outlet Centers (1 shouldn’t be ignored!) and we strongly recommend you look at them before investing.

But note: Tanger Factory Outlet Centers may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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