Some Sabra Health Care REIT, Inc. (NASDAQ:SBRA) shareholders may be a little concerned to see that the Director, Raymond Lewis, recently sold a whopping US$1.2m worth of stock at a price of US$21.47 per share. That’s a big dump, and it decreased their holding size by 24%, which is notable but not too bad.
Sabra Health Care REIT Insider Transactions Over The Last Year
In fact, the recent sale by Director Raymond Lewis was not their only sale of Sabra Health Care REIT shares this year. They previously made an even bigger sale of -US$1.2m worth of shares at a price of US$21.47 per share. That means that an insider was selling shares at below the current price (US$21.67). 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. We note that the biggest single sale was only 24% of Raymond Lewis’s holding.
In the last twelve months insiders netted US$1.6m for 73000 shares sold. Insiders in Sabra Health Care REIT didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by 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!
Insider Ownership of Sabra Health Care REIT
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. It appears that Sabra Health Care REIT insiders own 1.2% of the company, worth about US$50m. 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 Do The Sabra Health Care REIT Insider Transactions Indicate?
Insiders haven’t bought Sabra Health Care REIT stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. While insiders do own shares, they don’t own a heap, and they have been selling. We’re in no rush to buy! Of course, the future is what matters most. So if you are interested in Sabra Health Care REIT, you should check out this free report on analyst forecasts for the company.
But note: Sabra Health Care REIT 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.
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 firstname.lastname@example.org. 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.